Trent to buyout TVS Shriram holding in Landmark for Rs 84 crore

Company to continue pursuing the build out of Landmark format, focusing on family entertainment categories

Trent Ltd to buy TVS Shriram Growth Fund's stake in Landmark, a subsidiary of Trent Ltd, for a consideration of Rs 84 crore. The company today informed BSE that the Board of Directors of the Company at its meeting held on February 18, 2013, have approved to purchase from TVS Shriram Growth Fund its entire shareholding of 18,25,074 equity shares of Rs 10 each of Landmark Ltd.

Further, it has been agreed between the parties that the Fund would retain an option to invest in a minority stake in Westland Limited, also a subsidiary of the Company, at a future date.

The company would continue to pursue the build out of the Landmark format, increasingly focusing on family entertainment categories and seek to integrate these operations with the Westside business. This is aimed at realising cost and other operating synergies.

Landmark Limited, a leading book and music retail chain and a subsidiary of Trent Limited, a Tata Group company. It may be noted, in 2009, the PE firm picked up a 24 per cent stake in the retail chain by investing around Rs 65 crore.

Landmark Limited, which started as a Chennai-based company and established a book store in 1987. It operates stores across multiple formats, including 'Big-Box' stores in metros, airport and hotel stores.

End of 2009, when it raised money from TVS Capital, Landmark had 20 stores in operation, which was increased to 29 as on June 30, 2012. The retail chain in June announced that it will invest around Rs 50 crore over the next two years to launch an additional 7-8 large format stores, taking the total number of stores in India to 38.

The company, a subsidiary of (Tata) Trent in which TVS Capital holds 24 per cent stake, earned a revenue of Rs 260 crore in the last fiscal. It expects to touch Rs 350 crore during the current financial year.