Future Group has acquired HyperCity chain of hypermarkets from Shoppers StopBSE 1.89 % for Rs 655 crore, the country’s top retailer said on Thursday.
The buyout of HyperCity by Future Retail, the flagship arm of Future Group, through cash worth Rs 155 crore and shares worth Rs 500 crore would add more heft to Kishore Biyani’s growing supermarket business and consolidate its presence in western India.
Positioned as a more premium hypermarket than Future Group’s Big Bazaar chain, HyperCity has 19 large outlets spread over about 1.4 million square feet of retail space in cities such as Mumbai, Hyderabad and Bengaluru.
“The board of directors has also approved to issue and allot in aggregate and up to 93,10,987 equity shares of Rs 2 each fully paid up, collectively to the sellers at a premium of Rs 535 per equity share on preferential basis,” Future Retail said in a press statement.
The Bombay Stock Exchange-listed Shoppers Stop owns 51% in HyperCity, while parent K Raheja holds the rest. ET, in its edition on September 9, first broke the news that Future Group is in talks with the promoters of Hyper-City for a possible acquisition.
Over the years, Biyani has been on a buyout spree, pocketing one retail network after another, including Easyday chain from Bharti Enterprises, Delhi-based Big Apple, and southern chains of Nilgiris and Heritage Foods.
