Blackstone acquires majority stakes in Gokuldas Exports

Bangalore, Aug 20 (UNI) The Blakstone Group, the leading global asset management group, will acquire the majority stake in Gokuldas Exports, India's largest garment manufacturer and exporter.

As part of the buy out, Blackstone would acquire a 50.1 per cent stake in the company from the promoters. The founder promoters would continue to lead the company with Madanlal Hinduja as the Chairman, Rajendra Hinduja as the Managing Director and Dinesh Hinduja for Executive Director.

As per SEBI regulations, this transaction triggers an open offer by Blackstone to the public shareholders of Gokuldas for an additional 20 per cent of the company's outstanding shares. Subject to regulatory approvals, Blackstone would invest 165 million USD (including open offer) and have representation on the Board of Directors.

The city-based Gokuldas Exports was incorporated in 1979 and had 47,000 employees in 46 state-of-the-art manufacturing facilities with a system capacity to produce and export 2.5 million garments per month. It produces highly customised apparel for leading US and European brands, with strengths in fashion and in-house design.

Gokuldas was listed in the Bombay Stock Exchange and the National Stock Exchange.

Commenting on the transaction, Mr Rajendra Hinduja said, ''with its global reach and deep relationships, Blackstone is an ideal partner to help us realise our vision of building a global industry leader. With Blackstone's relationships across the world, our customer profile is likely to get a significant impetus which will take the company to a higher growth trajectory''.

Kotak Investment Bank, which acted as the exclusive financial advisor for the transaction, was the manager to the open offer being made by Blackstone.

UNI