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
- UPDATE 4-JetBlue flight makes emergency landing at California airport, 4 hurt
- Scots independence polls close, UK's future in the balance
- UPDATE 1-Microsoft lays off 2,100, axes Silicon Valley research
- UPDATE 2-Two small Russian banks taken off Canada sanctions list
- UPDATE 2-Russia approves tough budget as sanctions restrict growth
China is not a warlike nation, President Xi Jinping said on Thursday, during a rare trip to neighbour India that was dominated by a standoff on a barren Himalayan plateau between soldiers from the world's two most populous nations. Full Article | Slideshow
Obama to nominate Indian-American Richard Verma as India ambassador - congressional source. Full Article