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India's Future Retail closes acquisition of supermarket Hypercity

India's Future Enterprises Ltd. completed the acquisition of Shoppers Stop Ltd.'s hypermarket chain Hypercity Retail (India) Ltd. as the department store operator transferred its entire shareholding to the Indian conglomerate, according to a Dec. 1 filing to the Bombay Stock Exchange.

The exchange filing noted that seven of Hypercity's directors, namely Ravi Raheja, Neel Raheja, Govind Shrikhande, Deepak Ghaisas, Nitin Sanghavi, Ameesha Prabhu and B.S. Nagesh, submitted their resignations from the board, effective immediately.

Meanwhile, Chandra Toshniwal, Harsha Saksena, Vijai Singh Dugar and Maya Taparia were appointed as additional directors.

It was announced Oct. 5 that Future Retail was set to acquire 77,158,778 Hypercity shares of 10 rupees each from Shoppers Stop. The department store operator had a 51.09% stake in Hypercity.

The fulfillment of the share purchase agreement between the two companies was executed Oct. 9. According to the agreement, the sale consideration was at 43.37 rupees per share, or a total of 3.35 billion rupees. The deal was to be paid via 791.8 million rupees in cash, plus the issue and allotment of 4,756,823 equity shares of 2 rupees each as share consideration.

Shoppers Stop said in a separate Nov. 14 filling that its shareholders approved the sale.

The department store company then proceeded to receive part of the cash consideration Nov. 30. Along with other sellers, it also transferred its entire Hypercity shareholding to Future Retail, effectively closing the deal and making Hypercity a wholly owned subsidiary of the conglomerate.

As of Nov. 30, US$1 was equivalent to 64.47 Indian rupees.