Trent jumps on formation of JV with Tesco

Trent Hypermarket, a wholly-owned subsidiary of Trent, has entered into an equal joint venture with the British retail chain, Tesco.

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Trent Limited has soared 8% to Rs 1,074 on the BSE after the company said that Trent Hypermarket, a wholly-owned subsidiary, has entered into an equal joint venture with the British retail chain, Tesco.

“Trent Hypermarket (THL) has entered into definitive agreements that envisage that Tesco Overseas Investments (Tesco Overseas), a wholly-owned subsidiary of Tesco would buy part of the equity shares held by the company in THL for about Rs 150 crore and would separately subscribe to additional THL equity shares for an amount of about Rs 700 crore,” Trent Limited said in a statement.

Following the conclusion of the proposed investment, the Company and Tesco Overseas will each hold a 50% stake in THL, it added.

Trent Hypermarket is a wholly-owned subsidiary of listed entity Trent, which owns and runs departmental stores such as Westside, Landmark, Star Bazaar and Star Daily.

The stock opened at Rs 1,040 and touched a high of Rs 1,095 so far. Till 1130 hours, a combined 15,000 shares changed hands on the BSE and NSE.