Dollar Industries and G.O.A.T Brand Labs have entered into a Joint Venture Agreement (JVA) for shareholding of Pepe Jeans Innerfashion Private Limited. Dollar had a 50-50 joint venture partnership under the name Pepe Jeans Innerfashion Pvt. Ltd. with Pepe Jeans Europe B.V. vide a JVA dated 11th August, 2017.
Recently, Pepe being desirous to exit from Pepe Innerfashion had offered Dollar to buy out Pepe’s entire stake in accordance with the clause dealing with Right of First Offer (ROFO) in the said JV Agreement. However, having renounced to exercise its ROFO rights, Dollar agreed to the transfer of shares held by Pepe in favour of G.O.A.T, a multinational company incorporated under the laws of Singapore. Subsequently, G.O.A.T has purchased the entire stake of Pepe and thus executed a Share Purchase Agreement (SPA) with Pepe. Following the stake transfer, the existing JVA between Pepe and Dollar stands terminated.
With the sale of its stake by Pepe to G.O.A.T, Dollar has entered into new JVA with G.O.A.T for its stake in Pepe Innerfashion. The existing License Agreement of Pepe Innerfashion with PJ Hungary KFT, Hungary for use of their brand name ‘Pepe Jeans / Pepe Jeans London’ would continue to be used by Pepe Innerfashionon with revised terms and conditions that has been agreed on between Pepe Innerfashion and PJ Hungary KFT. The share transfer and new agreement will not affect the stake of Dollar and the business activity of Pepe Innerfashion will continue as it is.
Sharing his thoughts on the new development, Mr Vinod Kumar Gupta, Managing Director, Dollar Industries Limited stated, “The JVA will embark a new journey for Dollar Industries Limited with G.O.A.T. Mr. Rishi Vasudev has a remarkable history of growth acceleration, brand building and successful ventures in the fashion and lifestyle space. The new partner i.e. G.O.A.T Brands bring in expertise, knowhow and technology to enhance our D2C capabilities. With our JV, we intent to enhance our product portfolio with more premium brands, thereby increasing our offerings.”
“The innerwear market has always been a focus category for us. We are extremely excited to announce that G.O.A.T Brand Labs has partnered with Dollar Industries Limited for manufacture, sales and distribution of Pepe Jeans innerwear for Men, Women and Kids. Along with Dollar Industries Limited, we plan to create an extensive offline and online presence for the brand and add more brands in the future to our portfolio”, said Mr Rishi Vasudev, Founder of the G.O.A.T Brand Labs Pte Limited.
The new JV Partner i.e. G.O.A.T will purchase 1,00,00,000 equity shares of Pepe Innerfashion from Pepe Jeans Europe BV which constitutes 50% of the paid-up share capital in Pepe Innerfashion. Additionally, G.O.A.T will further subscribe 2% of additional non-voting equity on the existing and increased paid up capital.