Shoppers Stop Ltd. announced that it has closed the sale of a controlling stake of its 100% Subsidiary, Crossword Bookstores Limited (Crossword Bookstores) to M/s. Dinesh Gupta, Aakash Gupta and Family (Owners of Agarwal Business House) (ABH), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH (the Agreement) signed on August 31, 2021. The business of Crossword Bookstores Is valued at Rs.41.6 Crs.
Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration, the company said in its statement.
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, which has grown more than 3 times in the last one year, it added.
At the Board Meeting of the Company held on August 31st 2021, the Board has approved the transaction. Subject to receipt of necessary consents, Shoppers Stop shall divest 51% stake (expected to be completed within 15 days) and another 39% in the next 12 months, the company said.
Commenting on the sale, Venu Nair, Managing Director and Chief Executive Officer of the company said, “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. This represents another step in our progress to elevate Shoppers Stop to a customer focused, Omnichannel retailer, to enable us to deliver on the promises we make to our customers and shareholders. Most importantly, we are selling Crossword Bookstores to our franchisee ABH, who has been in this business for more than two decades and are extremely passionate about the book business. We are extremely confident ABH will grow the book business and take it to the next level. I am very thrilled about this deal, as It is a win-win for both Shoppers Stop and ABH.”
Aakash Gupta on behalf of the acquiring family said “We are very excited on the beginning of a new journey for this iconic brand. 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.”
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