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ShareMumbai: Kishore Biyani-led Pantaloon Retail (India) Ltd on Friday said the company's board has approved spinning off its value retail businesses Big Bazaar, Food Bazaar and other related formats into a wholly-owned subsidiary with a view to enable capital infusion.
Pantaloon Retail operates 119 Big Bazaar stores in over 70 cities and plans to have 275 stores by 2014. "The board has decided to realign the company's businesses in order to encash value created in non-retail businesses and create greater financing flexibility," the company said in a statement.
The board also agreed to transfer its investment in Future Brands Ltd and transfer assets held by non-retail businesses held through its wholly-owned subsidiaries such as Future Knowledge Services Ltd and Future Learning and Development Ltd for an aggregate consideration of Rs 190 crore to PFH Entertainment Ltd, a promoter company.
The board also approved consolidating Pantaloon's investments in financial services business such as Future Capital Holdings Ltd and some of its insurance joint ventures.
Earlier in April, the company had said it planned to restructure itself by adopting a new name and create separate subsidiaries for fashion, retail and logistics. The plan was subsequently scrapped.
Kishore Biyani, however, declined to comment on DNA Money's query regarding the company's plans to raise funds through private equity and sale of non-core assets.
