Future Group chief Kishore Biyani has scripted a new structure for his business. Biyani is on a cleanup act as he readies to mop up funds for his group's expansion.
Sources suggest that some of the valuation drags like financial services will now be carved out of his core retail listed company Pantaloon Retail.
Following this a new promoter holding company will be formed to which Pantaloon Retail's holdings in Future capital and Future Generali will be transferred.
Pantaloon Retail shareholders will be compensated in form of shares and this will ensure that Pantaloon Retail remains as a pure retailer with Central, Pantaloon, Staples, Home Solutions in its fold.
Big Bazaar and Food Bazaar will become wholly owned subsidiary thus giving room to infuse capital by selling stake in this newly formed subsidiary. This would pave way for the Carrefour deal to materialise.
Carrefour will pick up a stake in Big Bazaar and Food Bazaar and a deal which may see a closure in December this year as the negotiation agreement comes to an end.
Big Bazaar needs odd Rs 1000 crore to expand to 300 stores from current 119 in next three years.
Kishore Biyani shared his future plans with NDTV and told us the restructuring of his business is aimed at creating more value and yes on Carrefour he will be on his way to Paris in December to meet Carrefour's top bosses to work out the fine print.