In a major decision, Future Group inked a pact with the Heritage Group owned by Andhra Pradesh Chief Minister N Chandrababu Naidu and according to it, 124 store chain to become part of Future Retail network.
Future Retail will issue about 17.8 million equity shares of Rs 2 each to shareholders of Heritage Foods Retail Ltd.
It said the scheme of arrangement will involve slump sales of retail business and veterinary care business of Heritage Foods Ltd into Heritage Foods Retail Ltd.
Future Retail added that the scheme will also involve demerger of retail business from HFRL into FRL.
If sales proceeds are between Rs 400-500 crore, sharing amount between the companies will be 50 per cent of proceeds above Rs 400 crore.
On closure of deal, Heritage Foods will own 3.65 per cent of shareholding in Future Retail via fresh issue of shares by the company.
If sales proceeds are above Rs 500 crore, sharing amount between companies will be 75 per cent of proceeds above Rs 500 crore.