Wednesday 27 August 2014

Liberty Shoes to consolidate biz in 3 phases

The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Fast-moving consumer goods company  Liberty Shoes  is likely to undertake a consolidation exercise to increase operational efficiencies and eliminate royalty. According to sources, the consolidation will possibly complete on three years in three different phases. The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Liberty had entered into a two-year agreement with partnership firms in FY13 .the proposal is likely to be submitted to the board after clarity on tax implication, evaluation of assets. The payment will be made through allotment of shares to partners post valuations exercise.  Liberty Shoes declined to comment on this development. 

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