Walmart to Buy 49% in Holding Company of Bharti Retail
29.05.2013 557 views
Walmart Stores Inc, the world's largest supermarket, looks set to become the first foreign company to invest in multi-brand retail by buying a 49% stake in Cedar Support Service, the holding company for Bharti Retail, in September for Rs 455.8 crore.
Walmart will convert compulsory convertible debentures ( CCDs), purchased in March 2010, into 42.6 crore equity shares, according to internal documents detailing the venture's future plans that were reviewed by ET. The due date for conversion ends in September.
The conversion will help Cedar Support Service (CSSL) infuse fresh equity in its step-down subsidiary, Bharti Retail, which has plans to nearly triple its retail stores to 638 by December 2018, from 228 now. It will roll out 104 stores by December 2013.
Bharti Retail will raise Rs 3,867 crore over six years through a mix of debt and equity to fund its expansion plans. It will raise Rs 1,085 crore as equity and Rs 2,782 crore debt.
Source: The Economic Times