India-based investment firm PremjiInvest has reportedly acquired a 6% stake in Future Retail for $252m from Cedar Support Services, a subsidiary of Bharti Ventures.
Future Retail is the operator of Big Bazaar hyper and supermarket chain, fbb and Foodhall, Easyday Club, and eZone in India.
Future Group founder and chief executive officer Kishore Biyani was quoted by the Financial Express as saying: “Mittal family, which held 9% stake in Future Retail, has sold 6% stake to PremjiInvest.
“PremjiInvest is one of the larger investors in consumer space in India. They are also investors with us in Future Lifestyle Fashion.
“The value of the transaction is about $251m, out of which Future Retail will get up to $88.8m by way of a clawback provision. Future Retail has a provision in terms of the gains coming out of this transaction.
“It is too early to talk about how to use the proceeds. This will go for expansion and reducing our debt and interest.”
Following this deal, Cedar Support Services will own a minority stake of 3% in Future Retail.
Last month, consumer-focused private equity firm L Catterton Asia announced that it will acquire a 10% stake in Future Lifestyle Fashions (FLFL).
FLFL also operates more than 400 stores spread under Central and Brand Factory banners in India, while it has a presence across all key segments within the fashion industry.