Pantaloon to demerge fashions business
MUMBAI (Reuters) - Pantaloon Retail PART.NS and Future Ventures India FVIL.NS will demerge their fashion businesses into a new listed unit that will simplify the businesses into three main segments, the two companies said late on Friday.
Under the restructuring, all fashion brands, currently held by Pantaloon Retail and group firm Future Ventures will be transferred to Future Fashion, along with debt of 12.26 billion rupees.
Pantaloon Retail shareholders will get one share of Future Fashions for every three held, while Future Ventures shareholders will get 2 shares of the new entity for every 31 held.
"We grew multiple formats in the early stages of our growth, and now as each one of them has become sizeable, we are giving them independence to propel their growth," Kishore Biyani, CEO of Future Group, said in the statement.
The company will also seek shareholder approval to raise 15 billion rupees through public or private offerings of shares.
Earlier this year, Aditya Birla Nuvo, part of the Aditya Birla conglomerate, agreed to buy a controlling stake in Pantaloons Format clothing brand and retail chain to help cut its debt. (Reporting by Prashant Mehra; Editing by Michael Perry)
- Tweet this
- Share this
- Digg this
- Govt considers ban on e-cigarettes, sale of single smokes
- Islamic State fighters kill 220 Iraqis from tribe that opposed them
- India's fiscal deficit in H1 almost 83 pct of full-year target
- Muslim men over 50 pray at Jerusalem's Aqsa mosque amid tight security
- Air strikes hit Kobani as Kurdish peshmerga prepare to enter
Shares Hit Record
The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro. Full Article
China's shadow banking sector growing rapidly, third largest in world - FSB. Full Article