With reference to the press reports which state that the CCI has rejected the application seeking its approval to the Aditya Birla Nuvo Limited [ABNL] acquiring a controlling stake in the Pantaloons retail format business from Pantaloon Retail (India) Limited [PRIL], we wish to clarify that the CCI has not rejected the transaction.
The CCI has in its order released yesterday noted that the merger notification made by the parties on the basis of the Memorandum of Understanding signed between them on 14 June 2012 was premature and that it would require copies of the final board approval and scheme of arrangement for the demerger in order for it to evaluate transaction.
PRIL and ABNL are committed to giving effect to the Memorandum of Understanding and are in the process of finalising certain details of the transaction and the scheme of arrangement. Once the application is re-submitted with requisite information, the CCI will consider the proposed acquisition as per its procedures and policies.
In May, it was announced that Aditya Birla Nuvo Ltd (ABNL) plans to acquire a majority stake in Pantaloon Retail. This proposed transaction, which will help the Future Group’s company pare debt.
ABNL to infuse Rs.16 billion in the PRIL business by issuing debentures worth Rs.8 billion at mutually agreed terms and taking on debt of Rs.8 billion, reports added.