Pantaloon in ABNL pocket
Aditya Birla Nuvo to invest Rs 1,600 crore in Pantaloon stores.May 01, 2012 | comments ( 0 ) |
Aditya Birla Nuvo Ltd will infuse Rs 1,600 crore into Future Group’s Pantaloon and will acquire a majority stake in the store chain, which will later be demerged to be listed as a separate entity.
ABNL will subscribe to debentures amounting to Rs 800 crore issued by PRIL and on completion of the demerger process, the debentures will convert into equity in the demerged entity of the Pantaloon format. The existing shareholders of PRIL, including its promoters, will continue to own shares in the demerged entity. Post demerger, the total debt of Pantaloon Retail will reduce by Rs 1,600 crore. ABNL will make an open offer of a minimum 26 per cent to the shareholders of the resulting entity. Commenting on the development, ABNL Chairman, Kumar Mangalam Birla said, "The proposed acquisition is in line with our strategic intent to be on the top of the league and to create the largest integrated branded fashion player in the country through an extension into the value segment."
Commenting on the deal with ABNL, Future Group CEO, Kishore Biyani said, "This marks a unique coming together of brands and enterprise that will create significant value for customers, suppliers and all stakeholders."
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