Azgard-9 Limited is acquiring 100 percent stakes of an Italian company Montebello, for a consideration of 23.758 million euros.
Azgard-9 will perform this acquisition through purchasing 100 percent stakes of Montebello’s holding company Fartital AB which currently holds 100 percent of Montebello’s stakes.
According to Azgard-9’s announcement made on May 15, the State Bank of Pakistan (SBP) has permitted them to remit 23.758 million euros for the acquisition of the foreign company.
Through this acquisition, Azgard-9 will be able to increase its export by 20 percent per annum with higher value addition and profit margins. They will also become the first multinational branded textile/apparel business in Pakistan.
Fartital AB, a special purpose holding company is incorporated under the laws of Sweden and holds 100 percent stakes of the target company Montebello which is incorporated under Italian law and located in Verona, Italy.
“Once Azgard-9 acquires Fartital AB, it will have 100 percent ownership of the target company as well,” Ijaz Haider said. Montebello is a specialist in the global denim market supplying several types of specialist denim. It markets and sells the same under its own registered trademarks and brands and has a global distribution network through its own sales force and brand exclusive agents.
About 85 percent of its sales are in the Pan European market. It has also invested significant amounts in research and development and in 2005 registered an international patent on a particular process for controlling the dyeing of denim products.
Azgard is a vertically integrated specialized textile company in Pakistan manufacturing specialized yarn, denim fabric and denim garments, which are marketed through a global sales and distribution network.
