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Birlas set to pick up stake in Pantaloon Retail

The company is likely to get deleveraged by Rs 1,600 crore

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Arijit Barman Mumbai
Last Updated : Jan 20 2013 | 3:24 AM IST

AV Birla Group company AV Birla Nuvo through Madura Garments is likely to pick up a majority stake in Pantaloon's Fashion format. According to sources, Pantaloon Fashions will get demerged from Pantaloon Retail, into separate listed company.

Madura Garments with Peter England, Van Huesen, Allen Solly will pick up up a significant stake in this new entity and go for an open offer.  Post offer, 50% stake will be with Birlas, Biyani will have 25%, and the remaining with public and institutions.

Pantaloon Retail is likely to get deleveraged by Rs 1,600 crore.

Birlas will infuse close to Rs 800 crore immediately, while Rs 800 crore debt of  Pantaloon Retail will get transferred into this new entity.

The board meet is going on in Mumbai. JM Financials is the advisor.

No official comment avaliable as yet, but but a formal announcement is expected later today.

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First Published: Apr 30 2012 | 3:52 PM IST

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