Aditya Birla Fashion acquires American Eagles selling rights; shares end 5% up
Aditya Birla Fashion and Retail Ltd will sell American Eagle Outfitters and Aerie brands next year.
Key Highlights
- ABFRL will sell American Eagle Outfitters products online and through multi retail stores.
- ABFRL stock climbed on Sensex after the announcement.
- The stock closed higher at Rs 174 per share.
Aditya Birla Fashion and Retail on Wednesday announced that it has entered into a multi store retail and e-commerce license agreement with American Eagle Outfitters, Inc and Aerie brands. The company’s stock price rose over 7% post this announcement on BSE.
“By virtue of the License Agreement, the Company has acquired the exclusive rights to use the American Eagle Outfitters and Aerie brands to operate stores and e-commerce site and to sell products of these brands in India,” ABFRL said in a filing on BSE.
ABFRL stock price jumped 7.50 points or 4.56% to trade at Rs 172 per share on BSE Sensex at 1518 hours. Before the announcement the company’s stock price was hovering at Rs 167 per share.
Minutes before the closing bell the company’s stock was up 7.29% to trade at Rs 176.50. ABFRL stock ended higher 5.78% or 9.50 points at Rs 174 per share.
Date of launch as mentioned by the company will be in the year 2018 and the multi retail store will sell ‘high-quality, on-trend clothing, accessories and personal care products at affordable prices,’ the company said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.