Retail chain Shoppers Stop on Tuesday said it has closed the sale of a controlling stake in its wholly-owned subsidiary Crossword Bookstores at a gross business valuation of Rs 41.62 crore.
The stake in Crossword Bookstores is being sold to the owners of Agarwal Business House (ABH), Pune -- Dinesh Gupta, Aakash Gupta and Family, Shoppers Stop said in a regulatory filing.
Subject to receipt of necessary consents, Shoppers Stop shall divest 51 per cent stake, that is expected to be completed within 15 days, and another 39 per cent stake will be divested in the next 12 months, it added.
"The business of Crossword Bookstores is valued at Rs 41.6 crore. Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration," Shoppers Stop said.
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The sale of the Crossword Bookstores is consistent with the company's strategic plans, which is to focus on its core business and expand its strategic pillars viz, First Citizen, Private Labels, Beauty and most importantly, its omnichannel business, it added.
"We are pleased to continue the business transformation we set out to accomplish from last March and selling the books' business Is an important part of that strategy," Shoppers Stop MD and CEO Venu Nair said.
On the development, Aakash Gupta on behalf of the acquiring family said, "Crossword 2.0 is about focusing on readers and improving the overall customer experience. We are planning to infuse a significant amount for renovation, expansion, and the new Omni Journey."
Shares of Shoppers Stop Ltd closed at Rs 240.80 per scrip on BSE, up 0.23 per cent from the previous close.
