Warburg's open offer for Future Capital delayed

Future Capital on Monday informed the Bombay Stock Exchange the open offer by US-based private equity firm Warburg Pincus for acquiring 26 per cent additional stake in the company was delayed, as it had not secured regulatory clearances. The offer was originally scheduled to open on July 25 and close on August 11.

“The open offer is delayed from its tentative schedule, as the relevant parties are in the process of obtaining necessary regulatory approvals,” Kotak Mahindra Capital Company, on behalf of Future Capital Holdings, informed the exchange. Once the approvals were secured, shareholders would be informed about the revised timeline.

In June, debt-ridden Future Group had sold its 53.67 per cent stake in Future Capital Holdings to Warburg Pincus for an estimated Rs 560 crore. After the stake purchase, Warburg Pincus had made the mandatory open offer to acquire 17.7 million shares, or 26 per cent stake, in Future Capital Holdings at Rs 162 apiece. An open offer provides an opportunity to existing investors to exit the company. The open offer share price of Rs 162 apiece is at a premium of 14 per cent over the price during the announcement of the sale on June 4.

Kishore Biyani’s flagship Future Group, which is present in the retail space through the Big Bazaar, Food Bazaar, E-zone and Pantaloon chains, accounts for debt of about Rs 5,000 crore.

Shares of Future Capital Holdings on Monday closed at Rs 150.20, down 0.53 per cent on the Bombay Stock Exchange.