Author Topic: Insight on Pantaloon Retail's Restructuring  (Read 3256 times)

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komal

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Insight on Pantaloon Retail's Restructuring
« on: November 03, 2009, 08:55:34 AM »
Pantaloon Retail announced re-organization plans for the company with a view to unlock value in non-retail businesses and raise capital for the value retail business.

The Board led by Mr. Kishore Biyani approved the proposal to drop down the value retail business (Big bazaar, Food Bazaar and related formats) in a wholly owned subsidiary to enable capital infusion for this business. It is probable that the company may either look to list this entity or sell a
stake in this subsidiary to raise capital for expansion.

Pantaloon's board also approved transfer of investment in Future Brands (76% owned sub) and non-retail businesses held by Future Knowledge Services (100% owned sub) and Future Learning and Development (100% owned sub) to PFH Entertainment (a promoter company) for a consideration of Rs1.9bn [This is a bit Shady Move, family transfer  ;)]

Company is looking to unlock value and consolidate its investments made in the financial services sector – holdings in Future Capital and
in Future Generali Insurance venture.