Published
Dec 8, 2017
Download
Download the article
Print
Text size

Future Retail board approve the Hypercity "scheme of arrangement"

Published
Dec 8, 2017

On December 7, the board of Future Retail approved the “scheme of arrangement” made with Shoppers Stop over their acquisition of Hypercity Retail in a stock and cash deal.

The Future Retail board has approved the terms for their acquisition of Hypercity - HyperCity-Facebook


A BSE (Bombay Stock Exchange) filing from December 7 stated that the Future Retail board had "considered and approved the scheme of arrangement between Hypercity Retail and Future Retail Ltd."

Shoppers Stop, the current owner of Hypercity, has a 51.09 percent stake in the company which they will hand over to Future Retail in exchange for cash and stocks. Shareholders at Hypercity and Shoppers Stop had already agreed to the sale in a vote and so the deal is now close to completion. The deal was initiated on October 5 this year when the boards of both companies decided to go ahead with the transaction.

Hypercity has been incurring losses and, in the financial year spanning 2016/2017, the company has a turnover of 1,191 crore rupees (approximately 179 million dollars). The terms of the deal that Future Retail’s board have now agreed to will see Future Retail allot 93.1 lakh shares valued at two rupees each to the promoters of Hypercity. This will amount to around 500 crore rupees (approximately 75 million dollars). When the transaction is finished, Hypercity will be a wholly owned subsidiary of Future Retail Ltd. 

Copyright © 2024 FashionNetwork.com All rights reserved.