De Beers may acquire 51% in Rajesh Exports
De Beers may acquire 51% in Rajesh Exports US-based buyout fund and diamond industry giant De Beers is said to be interested in acquiring 51% stake from the promoters of jewellery maker and retailer Rajesh Exports, reports Economic Times. There is no formal bid in place yet, however the fund is expected to pay a premium price for the buyout. Rajesh Exports has a market cap of Rs 26.50 billion. The acquisition of 51%, will lead to a mandatory open offer for an additional 20% of the company. >Rajesh Exports has undergone forward integration in the jewellery business and the company has been a wholesale gold jewellery maker and exporter, which is a low-margin business. While De Beers is primarily known for the diamond business, Rajesh Exports is predominantly into gold jewellery and is just about entering the diamond space. Shares of the company gained Rs 23.05, or 3.26%, to end at Rs 729.55. The total volume of shares traded was 82,498 at the BSE (Friday).
