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Our Bureau

Mumbai , Feb. 4

PANTALOON Retail (India) Ltd has said that it plans to pick up a 49 per cent stake in Planet Sports Pvt Ltd for a consideration of Rs 14.2 crore.

The company has approved in principle the proposal to subscribe to 28,40,880 equity shares of Planet Sports of Rs 10 each at a premium of Rs 40 per share.

The agreement was signed on Friday in Mumbai between Pantaloon Retail (I) Managing Director, Mr Kishore Biyani, and Planet Sports Chairman, Mr V.P. Sharma.

The deal is expected to boost the branded lifestyle-retailing segment in India, analysts said.

Pantaloon, which is expected to touch a turnover of Rs 1,000 crore, is one of the larger players in retail segment and owns chains in the names of Pantaloons, Big Bazaar, Food Bazaar and the Central chain of seamless shopping malls.

Planet Sports, a sports and fashion retail company here, is the sole franchisee of the UK-based retailer Marks and Spencer. It also has the exclusive distribution and licensing rights for brands such as Wilson, Puma, Speedo and Converse. It currently has six Marks and Spencer and 25 Planet Sports stores in India.

Mr Kishore Biyani, as quoted in a press release, said: "The alliance is going to change the face of branded lifestyle-retailing in India. The access that we will now have of Mr Sharma's retail expertise, as witnessed in South East Asia, will create a landmark in the already booming retail sector."

Mr Sharma said, "The fact that Planet Sports will now be working in synergy with Pantaloon will give leverage and a strategic advantage to both companies. The cohesion will bring about a new momentum in the retail industry."

Pantaloon Retail had reported net sales of Rs 658.31 crore for the year ended June 2004. For the July-December period, net sales stood at Rs 439.33 crore.

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