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Toys “R” Us enters India market through retail licensing arrangement with Tablez & Toys

September 2016

Client(s) Toys "R" Us , Inc.

Jones Day advised Toys "R" Us, Inc.("TRU"), the largest global retailer of toys and juvenile products, in connection with its entry into the India market through a retail licensing arrangement with Tablez & Toys Pvt. Ltd. (“Tablez”), an Indian affiliate of the Abu Dhabi-based Lulu Group, an Indian affiliate of the Abu Dhabi-based retail chain Lulu Group. It is expected that a minimum of sixty five Toys "R" Us stores will be opened in key cities in India (Bangalore, Kochi, Delhi, Mumbai, Ahmedabad, and Chennai) during the initial 10-year term of the agreement.

The arrangement also covers Sri Lanka. The complex arrangement provides Tablez with the right to open retail stores, kiosks, other retail spaces and an internet retail portal in India using the Toys "R" Us brands. The transaction is notable as Indian law places strict regulations around multi-brand retailing in India and therefore the license arrangements adopted a novel cross-border license and guarantee structure in order to address the relevant regulations and meet both parties’ requirements with respect to tax efficiency and credit support.

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