Alok Industries' MoU with Mileta for 60 pc stake

New Delhi, Sept 26: Alok Industries Ltd, integrated textile solutions provider today said it has entered into a Memorandum of Understanding (MoU) with Czech Republic-based, Mileta international Mileta) to acquire a 60 per cent stake in the company.

Further Alok Industries will acquire 19.6 per cent on certain mutually agreed terms and conditions.

Under the terms of the MoU, the company will exclusively own all the brands of Mileta including Mileta, Erba, Cottonova, Lord Nelson, Wall Street, Osaka and Erbelle as well as Mileta's Licensee rights of 'Daks' for handkerchiefs.

Mileta will provide design inputs, marketing inputs, training and transfer of technology, which the company will leverage to enhance its product value. It will also use Mileta's brands in India to widen its retail presence, and will pay 13.96 million Euros for the above acquisitions.

Alok Industries will also become a sourcing base for Mileta's products globally.

This acquisition is aimed at making further inroads in the growing European market and strengthening the company's presence in the fashion conscious apparel and home textile segments. The acquisition is expected to close in the next 3 months subject to financial and legal due diligences and regulatory approvals, if any while the company expects Mileta's operations to be integrated into it in 12 months after the acquisition.

Mileta, is a leading European manufacturer of high quality shirting fabrics, batistes and voiles, complete line of functional table linen and bed linen and exclusive handkerchiefs.

UNI