Peter England board approves Pantaloon deal

Aditya Birla Group firm Peter England Fashions and Retail

board has approved the demerger of Pantaloon format business and fixed the share swap ratio at 1:5 for every five shares of Pantaloon, shareholders will get one Peter England share. The development marks as a step towards Aditya Birla Group’s proposed acquisition of majority stake in Kishore Biyani’s Pantaloon Retail.

“The board of directors of Peter England Fashions and Retail, a wholly-owned subsidiary of Aditya Birla Nuvo, at its meeting held approved the scheme of arrangement for the demerger of ‘Pantaloons Format’ business into PEFRL,” Aditya Birla group said in a statement. “This is further to the in-principle approval given by the board of directors of ABNL on April 30, 2012. The board of directors of PEFRL also approved the share entitlement ratio in relation to the demerger. Accordingly, the equity shareholders of Pantaloon Retail (India) will receive one fully-paid up equity share of Rs 10 each in PEFRL for five fully-paid up shares (including DVR equity shares) of Rs 2 each held in PRIL.”

Under the transaction, PRIL will also transfer all undertakings, business, activities and operations pertaining to the Pantaloons format business to Peter England. Besides, a debt of Rs 1,600 crores will also be transferred to PEFRL. The date of transfer has been fixed at July 1, 2012. Peter England will issue equity shares to PRIL shareholders as per the board approved share entitlement ratio and post-demerger, the holding of ABNL through its subsidiary PEFRL will be 50.09 per cent.