Chennai-based GRT Jewellers has issued a letter of offer (LOF) to the public shareholders of Tribhovandas Bhimji Zaveri (TBZ) to acquire the remaining 25.88 per cent (1,72,70,845 shares) of the legacy jeweller for ₹431 crore. This follows GRT’s recent acquisition of around a 75% promoter stake in TBZ.
The offer is at ₹249.61 per share – a nearly 120 per cent discount to the company’s closing share price of ₹550.65 on Wednesday.
TBZ stake acquisition
TBZ’s market capitalisation is around ₹3,497 crore as of this writing.
GRT signed a Special Purchase Agreement (SPA) last month to acquire a majority stake in TBZ for ₹1,034 crore (₹209 per share), subject to regulatory approvals and customary closing conditions.
TBZ’s shares surged to a record high the day after the announcement.
GRT has decided to acquire TBZ to expand into northern markets and build a pan-India presence.