Investors
Blackstone
to Partner with Gokaldas Exports to Build a Global Leader in Apparel
Industry
Bangalore, August 20, 2007: Gokaldas Exports Ltd., India's
largest garment manufacturer and exporter, and The Blackstone Group
today announced a partnership to work together to make Gokaldas a global
leader in apparel industry. As part of this agreement, Blackstone would
acquire a 50.1% stake in the company from the Promoters. The founder
promoters would continue to lead the Company with Mr. Madanlal Hinduja
as the Chairman, Mr. Rajendra Hinduja as the Managing Director and Mr.
Dinesh Hinduja as the Executive Director. Per SEBI regulations, this
transaction triggers an open offer by Blackstone to the public
shareholders of Gokaldas for an additional 20% of the Company's
outstanding shares. Subject to regulatory approvals, Blackstone would
invest c. $165 million (including open offer) and have representation on
the Board of Directors.
India based Gokaldas Exports was incorporated in 1979 and today has c.
47,000 employees in 46 state-of-the-art manufacturing facilities with a
system capacity to produce and export 2.5 million garments a month.
Gokaldas produces highly customized apparel for leading US and European
brands, with strengths in fashion and in-house design. Gokaldas is
listed in India on the Bombay Stock Exchange (ticker symbol GOKALDAS)
and the National Stock Exchange (ticker symbol GOKEX).
Commenting on the transaction, Mr. Rajendra Hinduja said, "With
its global reach and deep relationships, Blackstone is an ideal partner
to help us realize our vision of building a global industry leader."
Mr. Hinduja added, "Blackstone is a long-term partner and intends
to work with us to deepen our customer relationships and accelerate our
growth plan. With Blackstone's relationships across the world, our
customer profile is likely to get a significant impetus. This is likely
to take the company to a higher growth trajectory."
Mr. Akhil Gupta, Chairman and Managing Director, Blackstone Advisors
India Pvt. Ltd., said "Gokaldas is the leading Company in India in
an industry that has seen significant growth in the Asian region post
the elimination of the garment quota regime in 2005. This favourable
industry dynamic combined with our highest regard for the management
team of Gokaldas Exports were key factors in our decision to enter into
this partnership. We are looking forward to using our global network in
contributing to the growth of the Company in a meaningful way."
Kotak Investment Bank acted as the exclusive financial advisor for this
transaction and is the manager to the open offer being made by
Blackstone.
The Blackstone Group
The Blackstone Group is a leading global alternative asset manager and
provider of financial advisory services. Its alternative asset
management businesses include the management of corporate private equity
funds, real estate opportunity funds, funds of hedge funds, mezzanine
funds, senior debt funds, proprietary hedge funds and closed-end mutual
funds. The Blackstone Group also provides various financial advisory
services, including mergers and acquisitions advisory, restructuring and
reorganization advisory and fund placement service.
