Kishore Biyani promoted Future Group, on Monday, announced its plans to spin off its branded apparel business under the ‘Pantaloons’ brand into a separate company.
The Future Group said the deal also envisages linking with Aditya Birla Nuvo, which will be investing Rs 800 crore via debentures in Pantaloon Retail India Limited. These debentures would be converted into equity of the demerged company, which is the branded retail business.
Subsequent to the completion of the deal, the branded retail business will be demerged and listed separately on the stock exchanges.
Aditya Birla Nuvo will have an equity stake in the branded retail business as a result of which it will cross the 25 per cent mark threshold limit and it will come out with an open offer.
Eventually, the Aditya Birla Group plans to have a stake of over 50 per cent in the branded retail business of Pantaloon Retail, a statement from the company said.
Published 30 April 2012, 15:21 IST