Mothercare formed a joint venture with Reliance Brands Holding UK, strengthening its presence in the South Asian region, and said it refinanced its existing debt facilities with Gordon Brothers.

Under the terms of the agreement, RBL UK will hold a 51% stake in the joint venture, while Mothercare Global Brand Limited will retain a 49% interest. RBL UK will acquire its stake for a cash consideration of £16 million.

Reliance Brands Ltd has deepened its partnership with Mothercare Plc by forming a joint venture that will own the Mothercare brand and its intellectual property assets across India, Nepal, Sri Lanka, Bhutan, and Bangladesh. This move follows Reliance’s acquisition of the brand’s rights in the Indian market in 2018.

Mothercare said on Thursday it also secured new debt facilities of 8 million pounds, helping the London-listed company reduce its debt.

Under the agreement, RBL UK will hold a 51 per cent stake in the joint venture, while Mothercare Global Brand will retain the remaining 49 per cent interest. RBL UK will acquire the stake for a cash consideration of £16 million,

Reliance Brands Holding UK Limited (RBLUK), a wholly-owned subsidiary of Reliance Brands Limited, will hold a 51 per cent stake in the joint venture, while Mothercare Global Brand Limited will retain the balance 49 per cent interest.