Future Group acquires Big Apple for Rs 61.35 cr
Mumbai: Retail major Future Group Thursday said it will acquire Express Retail Services Pvt Ltd, which runs Big Apple stores, for Rs 61.35 crore.
"Future Ventures India Ltd (FVIL) has agreed to acquire 100 percent equity share capital of Express Retail Services Pvt Ltd (ERSPL) for an aggregate sum of Rs 61.35 crore," FVIL said in a filing to the BSE.
ERSPL, which is a debt-free company, is expecting a net sales of Rs 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 store under the brand 'Big Apple' in the National Capital Region 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 were trading 2.52 percent down at Rs 8.90 apiece during late afternoon 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 Rs 1,600 crore.
The group, laden with an estimated consolidated debt of Rs 6,000 crore, was understood to have finalised plans to exit from stationery joint venture with US-based Staples by selling its entire stake to the partner for up to Rs 170 crore.
It is also mulling stake sale in Future Generali Insurance, a JV with Italian insurer Generali Group.
The group may hive off part of its 70 percent stake in Future Supply Chain (FSC), a supply management firm. The remaining 30 percent is held by Hong Kong-based Li & 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 Rs 560 crore.