Future Retail Acquires HyperCity

Mumbai Oct 6: Kishore Biyani-led Future Retail Ltd Thursday announced the acquisition of HyperCity Retail India Ltd owned by K Raheja Corp.The net worth of the deal is RS 655 crore.

Future Retail currently owns Big Bazaar, Easyday, Nilgiris and Heritage stores and online furniture store Fabfurnish.com while HyperCity Retail, a subsidiary of Shoppers Stop Ltd, operates HyperCity large format stores.

The company has said that "The stock-and-cash deal will be completed in three to five months, Future Retail will allot 9.310 million shares of Rs2 face value to HyperCity Retail’s 15 shareholders at Rs535 per share on a preferential basis."

The deal is subject to the approval of Shoppers Stop shareholders, and the company will hold an extra-ordinary general meeting on 13 October for this purpose.Once the deal is completed, HyperCity Retail will become a wholly owned subsidiary of Future Retail Ltd,

Experts are unsure about HyperCity, which owns 19 stores mostly in large metros, will fit into Future Retail’s existing network.