Aditya Birla Nuvo in its meeting on 30 April 2012 has approved the proposed acquisition of a controlling stake in Future Group's “Pantaloons Format” business post its demerger from Pantaloons Retail (India).

Pantaloons Retail (India) will issue debentures to Aditya Birla Nuvo worth Rs 800 crore at mutually agreed terms, convertible in the equity shares of the resulting entity i.e. Pantaloons Format business.Pantaloons Retail (India) will demerge its Pantaloons Format business through a court scheme of arrangement. Pantaloons Retail (India) will transfer the net assets of its business, its apportioned debt of Rs 800 crore and debentures of Rs 800 crore to the resulting entity. After the demerger, the debentures will be converted into equity shares of the resulting entity.

Aditya Birla Nuvo will make an open offer of a minimum 26% to the shareholders of the resulting entity. After the listing of the resulting entity and on conversion of debentures into equity, Aditya Birla Nuvo's holding in the resulting entity post open offer shall be a minimum of 50.01%. The resulting entity will become a subsidiary of Aditya Birla Nuvo

The proposed transaction is likely to be completed within 8 to 10 months, subject to the finalisation of the scheme of arrangement, due diligence and statutory and other requisite approvals.