SSG Capital to buy 40% in Future Supply Chain for Rs580 crore

Mumbai: Kishore Biyani’s Future Retail Ltd Thursday said alternative asset management firm SSG Capital Management Group will buy 40% stake in its supply chain business for Rs.580 crore.

The deal values Future Supply Chain Solutions Ltd at Rs.1,450 crore, Future Retail informed stock exchanges.

“This will include 14% stake to be acquired from Future Retail Ltd (FRL) and the management team collectively, and 26% from another minority shareholder SKC 1 Ltd (SKC),” the company said in a press release.

FRL currently holds 70.17% equity stake in Future Supply Chain, SKC 26% and the management team the rest.

SKC is part of Fung Capital, the private equity investment arm of the families of Victor Fung and William Fung, the controlling shareholders of the Fung Group.

Future Supply Chain was incorporated in April 2007 and is promoted by FRL. It is an end-to-end supply chain and logistics company.

In FY15, Future Supply Chain registered income form operations amounting toRs.408 crore and earned a net profit of Rs.25 crore.

Commenting on the proposed transaction, Kishore Biyani, managing director, Future Retail, said, “We are excited about this transaction including our partnership with SSG. It is a step towards our stated intent of optimal monetisation of some investments held by FRL.”