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Future Retail signs SPA for Hypercity Retail's Rs 655 cr acquisition

Shopper Stop owns 51.09 per cent stake in HRIL and rest is owned by the promoter group and others

Press Trust of India  |  New Delhi 

Future Retail
Future Retail has total space of 13.5 million sq ft. Photo: Bloomberg

on Monday said it has executed share purchase agreement (SPA) with for its Rs 655-crore of Hypercity Retail in stock-and-deal.

Last week, Kishore Biyani-led Ltd(FRL)had announced that it would acquire Hypercity that operates 19 large format premium stores in some key cities from the K Raheja group firm

"The company has executed the SPA with sellers and Hypercity Retail Ltd (HRIL) on October 8, 2017 for of the entire share capital," FRL said in a filing.

Shopper Stop owns 51.09 per cent stake in HRIL and rest is owned by the promoter group and others.

further said the deal would be "subject to receipt of approval of shareholders of the company and receipt of requisite regulatory and other approvals".

In a separate filing, said the SPA was executed on October 8, 2017.

"The consideration would be paid by issue and allotment of 47.56 lakh equity of Rs 2 each of as share consideration and Rs 79.18 crore as consideration," informed.

The loss-making Hypercity, majority owned by Shoppers Stop, had a turnover of Rs 1,191 crore in 2016-17 fiscal.

According to group, the "would result in further consolidation of retail business of FRL and would increase footfall of FRL in Hypermarket segment."

On October 5, the board of both companies decided on the transaction and according to the term sheet, FRL will allot 93.1 lakh with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis, FRL said in an exchange filing.

The preferential allotment will be made at a premium of Rs 535 per share and the remaining Rs 155 crore will be made upfront in

On completion of the transaction, Hypercity will become a wholly-owned subsidiary of FRL.

Under the deal, the promoters of Hypercity - 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.

First Published: Mon, October 09 2017. 19:40 IST