S Kumar’s Nationwide (SKNL), a well-known name in the apparel-making business in India, declared on Tuesday, June 24 that the 25.4 per cent stake in its fully-owned unlisted subsidiary Reid & Taylor will be acquired by an affiliate of GIC Special Investments for Rs 900 Crore. This deal will take place through a blend of fresh shares and convertible warrants and puts the Reid & Taylor’s valuation at Rs 3,540 Crore, which is much higher than S Kumar’s Nationwide’s  valuation at Rs 2,240 Crore.   

The GIC Special Investment happens to be the PE investment arm of the Government of Singapore Investment Corporation. As such after the materialization of the deal, the SKNL will be left with 74.5% stake in Reid & Taylor. The Reid & Taylor brand is into the business of high-profit margin luxury textiles and ready-to-wear apparels. It was in 1997 that the Dumfriesshire-based Reid & Taylor was acquired by the Kasliwals-controlled SKNL. It was recently that Reid & Taylor was spun off into a new entity. It may later get listed with the stock exchanges. High profile actors such as Amitabh Bachchan and Pierce Brosnan have endorsed the Reid & Taylor brand.