INDIA BUSINESS WORLD - DECEMBER 1st - DECEMBER 15th
- 2007
INDIABULLS BUYS OUT ASHOK PIRAMAL STAKE IN PIRAMYD
INDIABULLS Real Estate (IBREL) has acquired the Ashok Piramal group's 63.9% stake in Piramyd Retail for Rs 208 crore, kick-starting the first phase of consolidation in the nascent Indian retail space.
The acquisition has been routed through IBREL's 100% subsidiary, Indiabulls Wholesale Services. Indiabulls will also make an open offer for upto additional 20% of the fully diluted paid up capital at Rs 74.73 per share.
"The acquisition clearly highlights Indiabulls plan to be the leader in the retail industry in India by making sure that we are present in all the major retail verticals. As announced earlier Indiabulls is already in the process of opening 30 big box wholesale club stores all across the country. With this acquisition Indiabulls will have a very strong presence across wholesale / cash and carry, lifestyle and convenience store formats. We aim to provide the Indian shopper the best possible value for their money and a par excellence shopping experience coupled with stellar customer service," says Mr. Ikroop Singh, CEO, Indiabulls Wholesale.
Earlier this year, IBREL had announced plans of foraying into the retail business and had indicated a roll out in 30 wholesales stores in tier 2 cities in the first phase with a total investment of Rs 1,500 crore. Nandan Piramal, vice-chairman and managing director of Piramyd Retail was not available for comments. Sources said the deal was struck overnight.
Mr Piramal had claimed in recent times his intention of staying put in the business. Piramyd Retail is a lifestyle retail and convenience store chain with over 42 stores spread over more than 10 lakh square feet, operating under the Piramyd Megastore and Trumart brands.
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