Future Retail (FRL) shares climbed over 5 per cent intraday after it informed bourses that an asset management firm SSG Capital will acquire 40 per cent stake in Future Supply Chain Solutions (FSC) from existing shareholders, including Future Retail, for Rs 580 crore.
Later, the share price of Future Retail closed 0.93 per cent up at Rs 130.
Future Supply Chain Solutions is a logistics company in which Future Retail holds 70.17 per cent stake. As per the deal, SSG Capital would acquire 14 per cent stake held by Future Retail Ltd (FRL) and its management team in FSC. It would buy the rest 26 per cent from another minority shareholder SKC Ltd.
Kishore Biyani, managing director, Future Retail in a release said, “We are excited about this transaction including our partnership with SSG. It is a step towards our stated intent of optimal monetisation of some of the investments held by FRL. It will result in estimated proceeds of up to Rs 185 crore for FRL’s stake. Given that the supply chain arm is of critical importance for furtherance of Future Retail’s overall business objectives, FRL will continue to a hold majority stake of 57.4 per cent in FSC.”