GRT Jewellers India Private Limited (GRT) on August 31 announced signing of share purchase agreement (SPA) with the promoters of Tribhovandas Bhimji Zaveri Limited (TBZ) to acquire their stake of 74.12% in the company.

As per the SPA, GRT would acquire the promoter’s stake for an aggregate value of up to Rs 1,034 crore. "The consummation of the SPA will be subject to appropriate regulatory approvals and customary closing conditions. GRT will also be launching an open offer for another 26% as per applicable SEBI regulations," said the companies in a joint statement.

G R Ananthapadmanabhan, Managing Director of GRT Jewellers, said: "This very well fits into our strategy of spreading our presence across India with TBZ having 37 stores."

R Vijayaraghavan, Executive Director & CEO of GRT Jewellers, who spearheaded the acquisition process for GRT, said, ‘Experienced management bandwidth of GRT combined with professional senior executives of TBZ will work on several growth drivers to take TBZ to newer heights.’

Shrikant Zaveri, Chairman & Managing Director of TBZ, said: "What began five generations and 162 years ago as a single storefront in Zaveri Bazaar and a family dream has grown through decades of relentless dedication into 37 locations across the country. Seeing it step into the future with GRT fills me with immense pride."

On August 31, TBZ shares closed nearly 1% higher at Rs 304.4 apiece. The deal was announced in the post-market hours.

Deloitte was the lead advisor to the transaction and Axis Capital acted as the financial advisor for GRT. Trilegal advised GRT as the legal counsel while Srihari & Co advised on financial and tax due diligence. AZB & Partners advised TBZ as its legal counsel and Ernst & Young LLP acted as the financial advisor for TBZ.