Shoppers Stop sold wholly owned subsidiary Crossword Bookstores to its Pune-based franchisee Agarwal Business House at a gross business valuation of Rs 41.62 crore, the company informed on August 31.
“Shoppers Stop has closed the sale of a controlling stake of its 100 percent subsidiary, Crossword Bookstores Limited to M/s. Dinesh Gupta, Aakash Gupta and Family (Owners of Agarwal Business House), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH signed on August 31, 2021,” the company said.
“Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration,” it added.
At the meeting of the company held on August 31, the board approved the transaction. Subject to receipt of necessary consents, Shoppers Stop shall divest 51 percent stake (expected to be completed within 15 days) and another 39 percent in the next 12 months.
Shoppers Stop of late is eying an exit from its non-core business which would enable it to expand its core business and strategic growth pillars -- First Citizen, private labels, beauty and omnichannel business. The sale of Crossword Bookstores is in line with this strategy.