Shoppers Stop has received an approval for sale of 77,158,778 equity shares of Rs 10 each, constituting 51.09% of the paid up share capital of Hypercity Retail (India); (Hypercity / subsidiary company) to Future Retail, subject to execution of binding definitive documents, receipt of necessary approval from the shareholders of the company and such other regulatory/statutory approvals, as may be required. The board of directors at its meeting held on October 5, 2017 has approved for the same.
The consideration agreed for such sale is Rs 43.3687 per share. The consideration would be paid by issued and allotment of 4,756,823 equity shares of Rs 2 each of Future Retail as share consideration and Rs 79.18 crore as cash consideration in terms of the SPA which may be agreed, subject to such adjustments that may be agreed in the SPA and basis certain assumed debt. The enterprise value of Hypercity is Rs 911 crore.
Shoppers Stop is engaged in the retailing business. It runs a chain of departmental stores with brands including Shopper’s Stop, Home Stop, Crossword, Cafes and Restaurants etc.
