Gitanjali Restructuring? (With Update)

Considering that Gitanjali owns both Samuels and Rogers Jewelers retail chains here in the U.S., this could be big news

Gitanjali Gems, a listed jewellery company that owns brands such as Nakshatra and D’damas, has engaged consulting firm KPMG to help restructure its business. 

According to a company official, Gitanjali Gems believes that the intrinsic value is much more than the existing market cap of the company. 

The company said in an announcement to stock exchanges that the board has decided to explore the potential merger of subsidiaries, demerger and other forms of restructuring, or acquisition, or spin-off with the ultimate aim of enhancing and unlocking shareholder value ….

An investment banker at a foreign bank said that unlocking shareholder value is possible only if you demerge or sell a business. “If assets are worth the money the company claims, they need to translate into profits,” the banker said. 

What’s interesting is that Gitanjali still seems to be in acquisition mode, announcing plans to purchase an Italian jewelry company two weeks ago.  And in April, Gitanjali   told me that while the company was “actively closing stores” in the U.S., America remained a “focus for growth.”

 

UPDATE: Gitanjali U.S. responds here, says this will not impact its U.S. retail business.

JCK News Director