Koutons to acquire foreign company

Koutons Retail is looking at acquiring a foreign company,

a BSE filing by the company has indicated. Its board is expected to consider the acquisition at its meet soon. Koutons plans to spend up to 200 million dollars (over Rs 1,000 crores) on the acquisition. The shareholders of the company have also approved raising 200 million dollars via sale of global depository receipts.

After the news of proposed foreign acquisition, the stock was trading at Rs 5.96 per share, up 99 paise or 19.92 percent, on the Bombay Stock Exchange. It hit an intra-day of Rs 5.96 per share. The counter is seeing volumes of 27,572 as against its five-day average of 30,434. The stock has been hammered in the last one year falling over 54 percent.

Saddled with Rs 600 crores debt at an average interest of 14 percent, Koutons downsized operations from the peak of 1,400 stores to 900 stores in May 2011. It also closed 150 stores of its casual menswear brand, Charlie Outlaw, last year to cut costs and losses.