New Delhi: Kishore Biyani’s Future Group has made an offer for distressed Vishal Retail Ltd that could derail a bid by TPG Capital Lp to acquire the troubled company, according to a person familiar with the bid.
TPG had obtained the approval of lenders to purchase Vishal in March. The Indian retailer’s board had last month approved a non-binding, non-exclusive memorandum of understanding for talks with TPG.
Mint couldn’t independently confirm whether such an offer had been made by Biyani and if so whether it would result in a deal. The person in the know of the Biyani offer spoke on condition of anonymity.
Biyani declined to confirm or deny the move. “I am not saying anything on that (topic). I am not commenting,” he said.
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Amol Jain, director of TPG, declined to comment while Vishal’s managing director Ram Chandra Agarwal denied that there was any proposal from the Future Group.
Business Standard reported on Tuesday that Chennai-based Shriram Group would acquire Vishal’s retail business and TPG its wholesale division. Vishal told the Bombay Stock Exchange that it wasn’t in talks with the Shriram Group.
Vishal’s bankers, including State Bank of India, HDFC Bank Ltd and ING Vysya Bank Ltd among others, are currently engaged in the restructuring of debt amounting to Rs730 crore.
Some of the banks that are not part of the debt recast, including Singapore’s DBS Bank Ltd, London-based Barclays Bank Plc and Deutsche Bank AG, have filed separate winding-up petitions against Vishal in the Delhi high court.