Tata Group retail arm Trent today said its board has approved a proposal to buy private equity fund TVS Shriram Growth Fund's entire stake in Landmark Ltd, for Rs 84 crore.
"The company's board has approved to purchase from TVS Shriram Growth Fund I its entire shareholding of 18,25,074 equity shares of Rs 10 each of Landmark Ltd, a subsidiary of the company, for a consideration of Rs 84 crore," Trent said in a filing to the BSE.
Landmark, a Tata enterprise, is one of the country's largest book and music retailers.
Further, it has been agreed between the parties that the fund would retain an option to invest in a minority stake in Westland Ltd (also a subsidiary of Trent) at a future date," it added.
"The company would continue to pursue the build out of the Landmark format, increasingly focusing on family entertainment categories and seek to integrate these operations with the Westside business," the company said.
This is aimed at realising cost and other operating synergies, it added.
TVS Shriram Growth Fund I is a Rs 600-crore domestic rupee fund established with a vision to develop and nurture India's mid-cap businesses.
Shares of Trent today closed at Rs 1,145.10 on the BSE, down 1.14 per cent from its previous close.