K Raheja Corp Group firm Shoppers Stop today said its shareholders have approved sale of its subsidiary Hypercity to Kishore Biyani-led Future Retail Ltd (FRL).
The company has received 99.35 per cent votes in favour on votes polled through postal ballot and e-voting process for sale/transfer of Hypercity, it said in a filing to BSE.
On October 5, Shoppers Stop had sought shareholders' nod to sell 77,158,778 equity shares of Hypercity Retail at a consideration of Rs 43.36 per equity share, aggregating to Rs 334.63 crore.
Shopper Stop owns 51.09 per cent stake in HRIL and rest is owned by the promoter group and others.
The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17.
On October 5, the board of both the companies decided on the transaction and according to the term sheet, FRL will allot 93.1 lakh shares with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis, FRL had said in an exchange filing.
The preferential allotment will be made at a premium of Rs 535 per share and the remaining Rs 155 crore will be made upfront in cash.
On completion of the transaction, Hypercity will become a wholly-owned subsidiary of FRL, it had said.
Under the deal, the promoters of Hypercity - Shoppers Stop, RC Raheja and his family, CL Raheja and family, Jyoti C Raheja along with Chandru L Raheja and NC Raheja and family and B S Nagesh and family - will exit the company.
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