The Kishore Biyani-led Future group company said the open offer by Warburg Pincus to buy 26% in Future Capital is delayed due to regulatory clearances
New Delhi: Future Capital Holdings on Monday said the open offer by US-based private equity firm Warburg Pincus for acquiring 26% stake in the company has been delayed as it has not received regulatory clearances, reports PTI.
The offer was originally scheduled to open on 25th July and close on 11th August.
"The open offer is delayed from its tentative schedule as the relevant parties are in the process of obtaining necessary regulatory approvals," Future Capital Holdings said in a filing to the BSE.
The shareholders of the target company as requested to note that the revised timeline for the open offer will be intimated on receipt of regulatory approvals, it added.
Last month, debt-ridden Future Group had sold its 53.67% stake in Future Capital Holdings to Warburg Pincus for an estimated Rs560 crore.
After the stake purchase, the US-based PE firm had made an open offer to acquire 1.77 crore shares or 26% stake in Future Capital Holdings at Rs162 apiece.
As per the SEBI norms, Warburg Pincus will have to make an open offer of 26% to the shareholders of Future Capital Holdings. Open offer provides an opportunity to the existing investors to exit the company.
The open offer share price of Rs162 apiece is at 14% premium over the price when the sale announcement was made on 4th June.
The flagship Future Group of Kishore Biyani, which is into retail business through Big Bazaar, Food Bazaar and e-zone and Pantaloon has over Rs5,000 crore debt.