Pantaloon Retail (India) has decided to acquire a 15.73 per cent stake in Galaxy Entertainment Corporation, marking its foray in leisure and entertainment business.
Pantaloon, the Kishore Biyani controlled retail major, has decided to acquire 20 lakh equity shares of Rs 10 each of Galaxy Entertainment, representing a 15.73 per cent stake on the enhanced equity, at a premium of Rs 34 per share. The total investment for the acquisition is Rs 8.8 crore.
Post subscription, Pantaloon will come out with a mandatory 20 per cent open offer to the shareholders of Galaxy Entertainment.
Pantaloon last week approved private placement of 953653 equity shares of Rs 10 each at premium of Rs 724.02 per share to Bennett, Coleman & Company Ltd pursuant to the approval of the shareholders at an extra-ordinary general meeting.
"Pantaloon will strategically manage the business with an eye for exponential growth. With the increasing number of malls under development, the leisure and entertainment business is all set for take off in the country, " the company said in a media statement.
Pantaloon is one of the larger players in retail and owns retail chains with the names of Pantaloons, Big Bazaar and Food Bazaar. It also has the "Central" chain of seamless Shopping Malls. Galaxy owns and operates Sports Bar, Bowling Company and Rain Restuarant in Mumbai.
Kishore Biyani of managing director, Pantaloon, said, "Leisure and entertainment account for over six percent of the aspirational consumer spend and is growing rapidly. With the increasing number of malls, there is a strong need for quality options of leisure and entertainment. Galaxy will fill that need for the aspirational customers."
A spokesperson of Galaxy Entertainment said, "With a strong partner like Pantaloon and with the vision of Kishore Biyani, Galaxy will go from strength to strength. Growth in entertainment, food & beverages, leisure business will be facilitated by the strong presence and availability of prime space that Pantaloon has in malls across the country. Galaxy will also gain from the management band width that Pantaloon has created."