R 100 CR DEAL - Vishal Retail board okays sale of businesses

BY KAUSTUBH KULKARNI


Vishal Retail Ltd said its board has approved the sale of its retail and wholesale businesses to Shriram Group and the Indian unit of TPG, re- spectively, for a total consider- ation of `100 crore.

The sale does not include the firm's properties in Hubli, Kolkata, Dehradun and Jabalpur cities, the debt-rid- den retailer said in the state-ment to stock exchange.

The company, which runs stores under brands such as Vishal Megamart and Vishal Retail, had in June said, with- out giving financial details, TPG would buy its wholesale operations. “Good part about the deal is, Vishal Retail would now open in course of time... and it is now going into the strong hands of people who know how to run this business,“ Arun Kejriwal, director at re- search firm KRIS, said over the phone.

The two buyers would take over the business on a slump- sale basis with all assets and certain identified liabilities, Vishal Retail said.

The retailer had reported a net loss of `19.48 crore on net sales of `335 crore for the April-June period.

“The valuation, whether it is fair, would be known once the quantum of liability being tak- en over by these two buyers is quantified or clarified,“ Kejri- wal added. REUTERS