Future Capital-Warburg deal at Rs 162 per share
If you missed our coverage, here are the top 10 stories of the day.
The board of Future Capital Holdings has approved a 40 per cent stake sale to U.S. private equity firm Warburg Pincus LLC. Shares of Future Capital traded 7.5 per cent higher at Rs 147.25 on the BSE at 12.44 p.m., while the Sensex traded 0.85 per cent lower at 15,830.
The deal has been approved at Rs 162 per share, which represents a premium of 17 per cent to Future Capital's Friday closing price.
Pantaloon Retail, which holds 53.67% in Future Capital, will sell 40 per cent stake in Future capital at Rs 162 in the first tranche and a further 13.3 per cent stake in the second tranche also at Rs 162 per share.
Shares of the company soared 5.6 per cent to Rs 146.60.
Post the deal, Warburg will make an open offer for 26% stake. Warburg will infuse Rs 100 crore in the company via preferential allotment.
Pantaloon will get Rs 419 crore via the stake sale in first tranche and another Rs 132.8 crore via the sale in the second tranche. It will use the proceeds to reduce its debt from Rs 6,000 crore to Rs 5,450 crore.