by Titan Company, a jewelry and lifestyle retailer, has agreed to acquire the employee stock ownership plan (ESOP) shares of CaratLane, an online jewelry retailer, for Rs 350 crore.
The acquisition is part of Titan’s plan to consolidate its ownership of CaratLane. Titan currently owns 77.33% of CaratLane and the acquisition of the ESOP shares will increase its ownership to 95.08%.
The ESOP shares are held by the employees of CaratLane and the acquisition will give them liquidity for their investment. The ESOP shares are valued at Rs 400 per share, which is a premium of 12.5% over the current market price.
The acquisition is expected to be completed by the end of 2023.
Here are some of the reasons why Titan is acquiring the ESOP shares of CaratLane:
- To consolidate ownership: The acquisition will give Titan full ownership of CaratLane, which will allow it to better integrate the two businesses.
- To provide liquidity to employees: The acquisition will provide liquidity to the employees of CaratLane who hold ESOP shares.
- To attract and retain talent: The acquisition is likely to attract and retain talent at CaratLane, as employees will have the opportunity to own shares in the company.
The acquisition of the ESOP shares is a positive move by Titan. It is a sign that Titan is committed to CaratLane and that it is confident in the future of the business.
