LONDON (Alliance News) - India focused online fashion clothing retailer Koovs PLC on Monday said it signed a GBP24.0 million two-year deal with HT Media Ltd.
Shares in Koovs jumped 19% following the news to 13.45 pence each on Monday morning. HT Media is Indian media company and owner of the Hindustan Times newspaper.
Koovs agreed to buy four media tranches from HT Media for GBP6.0 million each. The company will satisfy 70% of payments in shares with the remaining GBP1.8 million paid in cash.
The company said its shareholders are in discussions regarding the amount of shares to be issued. Koovs expects to place shares at a price of 10.00p each.
The new deal will provide Koovs with GBP16.8 million of media and advertising services from HT Media in exchange for the issuance of shares. However, HT Media will not be obliged to acquire more than 20% of Koovs shares, it said.
Alongside, Koovs agreed to commission further media and advertising services from HT Media for GBP7.2 million in cash.
"We are delighted to have agreed this deal with HT Media," said Chief Executive Mary Turner. "It will mark the successful completion of the first round of funding for our strategic acceleration plan, providing us with an important platform to support our future growth."
