Koovs completes $32 million deal with HT Media
E-commerce firm Koovs has completed the £24.0 million ($31.79 million) deal with strategic partner HT Media Limited and has also extended the deal to over a four-year period from the two-year deal previously announced.
In June, Koovs had entered into a conditional agreement for a two-year deal HT Media Limited, which is one of India's largest media companies and owner of the Hindustan Times.
The deal was approved by the board in discussion with investors and will provide Koovs with Rs 223 crore (approx $31.79 million) of media and advertising services from HT Media.
Under the agreement, Koovs will acquire four £6 million tranches of media from HT Media at yearly intervals over a four-year period. £4.28m of each instalment will be satisfied by the issuance of new Ordinary Shares to HT Media, with the balance of £1.72m to be acquired by Koovs in cash.
HT Media has agreed to subscribe for £17.1m (previously £16.8m) of new ordinary shares of 1p each in the capital of the company, and Koovs has agreed to commission further media and advertising services from HT Media for £6.9m (previously £7.2m) in cash.
Koovs is confident that the deal with HT Media will help enhance its visibility and support future growth in India’s booming e-commerce fashion market.
Commenting on the completion of the deal, Mary Turner, chief executive of Koovs, said, "We are delighted to have concluded this deal with HT Media, one of India's most influential media companies. The agreement will give us premium exposure in further building the Koovs brand and will provide us with an important platform to support our future growth in what is the world's fastest growing economy."
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