BackFuture Group to acquire Big Apple
Firm to pay ₹61.35 cr for Express Retail Services, which runs NCR-focused Big Apple Stores
Premium(Future Ventures India has agreed to acquire 100% equity share capital of Express Retail Services for an aggregate sum of Rs 61.35 crore. )
Mumbai: Retail firm Future Group on Thursday said it would acquire Express Retail Services Pvt Ltd, which runs Big Apple stores, for 61.35 crore.
“Future Ventures India Ltd (FVIL) has agreed to acquire 100 % equity share capital of Express Retail Services Pvt Ltd (ERSPL) for an aggregate sum of 61.35 crore," FVIL said in a filing to BSE.
ERSPL, which is a debt-free company, expects net sales of 120 crore during 2012-13, it added.
“On completion of the acquisition of ERSPL, it will be a wholly owned subsidiary of FVIL and the operational performance of the business will form part of the consolidated financials of FVIL," the statement said.
ERSPL is engaged in retailing of groceries and food products through general convenience stores under the brand ‘Big Apple´ in the national capital region (NCR) for the last six years.
“FVIL through its subsidiary Future Consumer Enterprises Ltd has significant presence in Delhi and NCR region. This acquisition will help consolidate its position in the region, besides leveraging on its operational and administrative infrastructure," the Future Group firm said.
Future Group runs 100 stores of its retail brand KB’s Fairprice in NCR, while Big Apple has 65 outlets.
Shares of FVIL fell 2.52% to close at 8.90 on BSE.
Earlier this month, Future Group firm Pantaloon Retail (India) had said it would merge its wholly owned subsidiary Future Value Retail, which runs Big Bazaar and Food Bazaar stores, with itself.
In April, Future Group gave away majority control of Pantaloon to Aditya Birla Nuvo Ltd for a total consideration of 1,600 crore.
The group, laden with an estimated consolidated debt of 6,000 crore, was understood to have finalized plans to exit from stationery joint venture with US-based Staples by selling its entire stake to the partner for up to 170 crore.
It is also considering stake sale in Future Generali Insurance, a joint venture with Italian insurer Generali Group.
The group may hive off part of its 70% stake in Future Supply Chain, a supply management firm. The remaining 30% is held by Hong Kong-based Li and Fung, which is also interested in hiking its stake in the company.
In June, the group had sold majority stake in Future Capital Holdings to private equity firm Warburg Pincus for 560 crore. PTI
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