Shoppers Stop has transferred its entire shareholding in subsidiary Hypercity to the Kishore Biyani-led Future Retail Ltd.
As per the deal, the promoters of Hypercity viz.Shoppers Stop, RC Raheja and his family, CL Raheja and family, Jyoti C Raheja along with Chandru L Raheja and NC Raheja and family and B S Nagesh and family will exit the company.
On November 14, the shareholders of K Raheja Corp Group firm Shoppers Stop had approved the sale of Hypercity to Future Retail.
“…The company along with other sellers have transferred their entire equity shareholding held in Hypercity to Purchaser (Future Retail) on November 30, received part of cash consideration and share consideration consisting of over 47.56 lakh equity shares of Rs 2 each of Future Retail will be received, once the same is allocated by the purchaser,” Shoppers Stop said in a BSE filing.
Shopper Stop owns 51.09 per cent stake in Hypercity Retail India Ltd (HRIL) while the rest is owned by the promoter group and others.
The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17.
On October 5, the board of both the companies decided on the transaction and according to the term sheet, Future Retail Ltd (FRL) will allow 93.1 lakh shares with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis.
On completion of the transaction, Hypercity will become a wholly-owned subsidiary of Future Retail.