Pantaloon to demerge fashions business

MUMBAI Sat Nov 10, 2012 11:44am IST

1 of 2. A shopper takes a photograph with his mobile phone inside a shopping mall in Mumbai July 14, 2012.

Credit: Reuters/Danish Siddiqui

Related Topics

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)

FILED UNDER:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage