Warburg Pincus arm to invest in Future Capital Holdings through CCPS

The Board of Directors of Future Capital Holdings Limited have approved the proposal to reclassify authorised share capital, share purchase agreement entered between Pantaloon Retail India Ltd., Future Value Retail Ltd. and Mr. Kishore Biyani with Cloverdell Investment Ltd.

Pantaloon Retail India Ltd., Future Value Retail Ltd. and Mr. Kishore Biyani have entered into share purchase agreement with Cloverdell Investment Ltd for sale of equity shares representing maximum of 53.67% but subject to a minimum of 40% of the equity share capital of the company at a proposed price of Rs.162 per share in accordance with the terms and conditions of the share purchase agreement.

The Board approved preferential issue to Cloverdell of 0.01% Compulsorily Convertible Preference Shares (CCPS) at a price of Rs.162 per CCPS, with each CCPS convertible into 1 equity share of Future Capital Holdings Limited of Rs.10 each for an aggregate amount of Rs.100,00,00,080 (Rupees One Hundred Crore and Eighty Only).

Cloverdell belongs to the Warburg Pincus Group. Warburg Pincus is a leading private equity investor and invested approximately $2.7 billion in Indian Companies and currently has approximately $1.1 billion invested in India.

Upon completion of the transaction, Cloverdell will lauch a mandatory open offer at a price of Rs.162 per equity share in compliance with SEBI Regulations.

The Future Capital Holdings Ltd. stock was trading at Rs.141.85, up by Rs.4.85 or 3.54%. The stock hit an intraday high of Rs.149.95 and low of Rs.139.50.

The total traded quantity was 13.73 lakhs compared to 2 week average of 1.89 lakhs.

Source : Equity Bulls

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