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Future Retail board approves Hypercity Retail deal

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The board of has approved the ‘scheme of arrangement’ with with regard to its Rs 655-crore acquisition of in a stock-and-cash deal.

Future Retail board approves Hypercity Retail deal
The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17

According to a PTI report: In the meeting, the board of Future Retail Ltd (FRL) “inter alia considered and approved the scheme of arrangement between Hypercity Retail and Future Retail Ltd,” according to a BSE filing.

Shoppers Stop owns 51.09 per cent stake in Hypercity Retail India Ltd (HRIL) and rest is owned by the promoter group and others.

The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17.

On October 5, the board of both the companies decided on the transaction and according to the term sheet, Future Retail Ltd (FRL) will allot 93.1 lakh shares with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis.

On completion of the transaction, Hypercity will become a wholly-owned subsidiary of Future Retail.

Under the deal, the promoters of Hypercity — Shoppers Stop, and his family, and family, along with and and family and and family — will exit the company.