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:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

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