Hypercity sale approved by Shoppers Stop shareholders

On November 15, Shoppers Stop announced that, following a vote, its shareholders had approved the sale of the business’ subsidiary, Hypercity, to Future Retail Limited.

Shoppers Stop shareholders have voted to approve the sale of Hypercity to Future Retail - Hypercity- Facebook

In a vote that was conducted through a postal ballot and an online process starting on October 5, 99.35 percent of Shoppers Stop shareholders agreed with the proposed sale of Hypercity. The results of the vote were presented in a filing to the Bombay Stock Exchange (BSE) on Wednesday.

The sale of Hypercity by Shoppers Stop entails the sale of 77,158,778 equity shares of Hypercity Retail at a consideration of 43.36 rupees per share. This would raise a total of 334.63 crore rupees (approximately 50.3 million dollars).

Hypercity, the food, home, and fashion focused supermarket chain, is currently incurring losses and has not turned profitable. Now that the sale has been approved by shareholders, the transaction can be completed and this will make Hypercity a wholly-owned subsidiary of Future Retail Limited, part of the Future Group.

Moreover, following the deal, the Hypercity- Shoppers Stop promoters, R C Raheja and family members C L Raheja, Jyoti C Raheja, Chandru L Raheja, and N C Raheja as well as B S Nagesh and family, will leave the company.

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