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The shareholders of Pantaloon Retail (India) Ltd will receive one equity share of Rs 10 each of Peter England Fashions & Retail Ltd for every five shares of Rs 2 held by them.
The board of directors of Peter England Fashion, a wholly-owned subsidiary of Aditya Birla Nuvo, approved the scheme to demerge the Pantaloons format business into itself.
The board also approved merger of Future Value Retail Ltd, a wholly-owned subsidiary with Pantaloon Retail. The company, however, did not share details of the proposed merger.
According to industry watchers, the demerger marks a step closer to the Aditya Birla Group’s proposed acquisition of a majority stake in the Kishore Biyani-led Pantaloon apparel format retail business unit.
Under the deal, PRIL through a court scheme of arrangement would transfer all undertakings, business, activities and operations pertaining to ‘Pantaloons Format’ business to Peter England Fashions. A debt of Rs 1,600 crore would also be transferred to PEFRL. The appointed date of transfer is July 1.
Post-demerger, the holding of Aditya Birla Nuvo through its subsidiary PEFRL will be 50.09 per cent.
The scrip of Pantaloon Retail India closed at Rs 149, up 3.80 per cent from its previous close on the BSE on Monday.
Also read: >Pantaloon Retail shares rally 6%
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