ADANIS PUT RS 200-CR TAG ON RETAIL BIZ SALE

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Ahmedabad
The Times of India (Edition: Ahmedabad)
The heat from the entry of the world’s largest retailer Wal-Mart in the country is being felt by the Ahmedabad-based Adani group, which is fast exiting from the retail business. The group has fixed a price tag of Rs 200 crore for its retail chain.

The Mukesh Ambani-led Reliance is said to be close to clinching the deal for acquiring Adani Retail, which runs a string of stores across Gujarat’s cities. Though officials of the Adani group claimed they are negotiating with four companies—Reliance, Tata, Birla and an unidentified private equity player—sources said only negotiations with Reliance had progressed to a serious stage. A team of Reliance negotiators is expected to arrive in Ahmedabad shortly to clinch the deal.

The Adanis had not been doing well in the retail business and are keen to exit by selling off stake. Reliance is primarily looking at the real estate, rather than the Adani brand, in this deal. Some issues like retaining of the manpower are yet to be sorted out because negotiators for Reliance have made it clear that they would not like to be burdened with barely-qualified and poorly paid staff. Reliance officials said some of Adani retail stores were in rented premises and a proper valuation would be done.

Besides, there were too many Adani stores, which were smaller than 1,000 square feet in size, while the smallest model envisaged by Reliance for its retail venture was 2,000 square feet.
 
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