Gitanjali Gems acquires 90 per cent stake In Giantti Italia
29 Dec 2010
Diamond and jewellery major Gitanjali Gems Ltd has acquired a 90-per cent stake in Italian jewellery maker Giantti Italia SRL. Gitanjali made the acquisition from its wholly owned subsidiary in Dubai, Gitanjali Ventures DMCC.
The acquisition makes Milan, Italy-based Giantti Italia a direct subsidiary of Gitanjali Gems, the company said in filing with the Bombay Stock Exchange (BSE).
Gitanjali said the acquisition would help the company grow its branded jewellery business overseas while also gaining expertise in designing and branding concepts.
Mumbai-based Gitanjali Gems Ltd was earlier reported to be in talks with private equity firms for a "restructured jewellery brand holding company" where it will divest 10 per cent of equity to the private equity investors, to raise $100 million.
Gitanjali was, earlier, said to have been in talks with global PE investors Blackstone and CX Partners, Bain, Apex and Advent for stake sale.
Global consulting firm KPMG is currently working on restructuring the company and it is likely that Gitanjali may hive off its entire domestic jewellery business, including rough diamond sourcing, cutting and polishing to branded jewellery retailing, as a separate company.
Founded as a single company undertaking cutting and polishing diamonds for the jewellery trade in Surat, in 1966, the Gitanjali Group has grown to become a pioneer among major diamond and jewellery houses.
It was also the first major diamond and jewellery house to be launched and run by modern entrepreneurs rather than dynastic jewellers as also an authorised DTC sightholder (authorised bulk purchaser), a loyal customer and a modern multinational business run on innovative insights.
The company has the distinction of producing the world's smallest heart-shaped diamond (0.03 carat), and developing some 25 patented facet patterns.
