Five global funds compete for stake in Pepe Jeans India

By

Isabelle Crossley

Published
Mar 26, 2018

After scouting for a buyer for a 100 percent stake in its Indian unit in January this year, Pepe Jeans has received non-binding offers from five global companies which could see one sign a deal in the near future.

A mix of private equity and sovereign funds are currently vying for a controlling stake in Pepe Jeans in India. The funds include KKR, General Atlantic, Carlyle, and Khazanah (Malaysia’s sovereign fund). All have submitted non-binding offers to the denim fashion brand for review. Pepe Jeans, which is based in Barcelona, is hoping for a valuation of 2,000 crore rupees (approximately 300.6 million US dollars) for the Indian arm of the brand.

As the offers are non-binding, they may not make a final offer for the brand but it is a step in that direction. There has been no official statement concerning the matter by Kavindra Mishra, the Managing Director of Pepe in India. The funds themselves have also yet to comment.

Pepe Jeans has over 200 flagship stores across India, many of which being run as a franchise. The brand is also available in over 1,500 multi-brand outlets (MBOs) across the country. Selling the brand at a peak point in its performance could be due to the rising competition in the country as more and more international brands enter.