Kishore Biyani-led Future Retail today said it will fully acquire Travel News Services India (TNSI) in a Rs 100 crore deal, a move which would help the company to consolidation further its retail business.
The acquisition will help Future Retail to expand its presence at airports, metro stations and universities where the majority of retail outlets of TNSI and TNSI Retail are operating, the company informed BSE in a regulatory filing.
"The company has approved the acquisition of entire equity share capital of TNSI from its existing shareholders and also executed share purchase agreement and related documents for the proposed transaction," Future Retail said.
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Through this deal, Future Retail will have access to global retail brand "WH Smith" as its license is being held by TNSI.
Future Retail will pay Rs 85 crore to the sellers in proportion to their holding in TNSI for acquisition of shares and will give an additional consideration of Rs 15 crore subject to the fulfilment of other specified obligations.
TNSI had a consolidated turnover of Rs 131.9 crore in FY 2016-17.
Following the deal, TNSI's subsidiary companies -- TNSI Retail and Welcome Retail - will become step down subsidiary of Future Retail.
Welcome Retail is a joint venture of TNSI into which it holds 51 per cent of the share capital.
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