Caladium Investments gets CCI nod for acquiring minority stake in ABFRL

CCI said it has cleared the proposed acquisition of a minority stake in Aditya Birla Fashion and Retail Ltd by Caladium Investments, an affiliate of Singapore-based sovereign wealth fund GIC

The Competition Commission of India (CCI) on Tuesday said it has cleared the proposed acquisition of a minority stake in Aditya Birla Fashion and Retail Ltd by Caladium Investments, an affiliate of Singapore-based sovereign wealth fund GIC.

The proposed transaction relates to the acquisition of a 7.49 per cent stake in Aditya Birla Fashion and Retail Ltd on a fully diluted basis by Caladium Investment Pte. Ltd by way of preferential issuance of equity and warrants.

In a tweet, the CCI said it has approved the "acquisition of approximately 7.49% shareholding in Aditya Birla Fashion and Retail Limited on a fully diluted basis by Caladium Investment Pte. Ltd (GIC Investor) by way of preferential issuance of equity and warrants".

In May, Aditya Birla Fashion and Retail Ltd (ABFRL) announced that it will raise up to Rs 2,195 crore from Caladium Investments, a GIC investor.

ABFRL is engaged in the business of manufacturing and retailing branded apparels while GIC is a leading investment firm.

In another tweet, the competition watchdog said it has approved the "merger of Aditya Marketing and Manufacturing Pvt Ltd into Umang Commercial Company Pvt Ltd".

The proposed combination envisages the merger of Aditya Marketing and Manufacturing Pvt Ltd into the Umang Commercial Company Pvt Ltd. As a result of the merger, the shares held by Aditya Marketing in various entities will also get transferred to the Umang Commercial.

Umang Commercial is an investment holding company of Kumar Mangalam Birla and also a part of Aditya Birla Group while Aditya Marketing and Manufacturing is an investment holding company of BK Birla Group.

Deals beyond certain thresholds require approval from CCI which keeps a tab on anti-competitive practices in the marketplace.