Mumbai, Feb. 18
PANTALOON Retail (India) Ltd on Friday announced that it is taking a 15.73 per cent stake in Galaxy Entertainment Ltd.
Pantaloon will acquire 20 lakh equity shares of Galaxy Entertainment Corporation Ltd of Rs 10 each fully paid-up at a premium of Rs 34 per share, aggregating Rs 8.8 crore, through a preferential issue.
With this Pantaloon is entering the leisure and entertainment business. Pantaloon will strategically manage the business with an eye for exponential growth. With the increasing number of malls under development, the leisure and entertainment business is all set for take off in the country.
Pantaloon owns Pantaloon, Big Bazaar and Food Bazaar and recently launched "Central", a chain of seamless shopping malls. Galaxy owns and operates Sports Bar, Bowling Company and Rain Restaurant in Mumbai.
Mr Kishore Biyani, Pantaloon Retail, was quoted in a press release as saying: "Leisure and entertainment account for over six per cent of the aspirational consumer spend and is growing rapidly. With the increasing number of malls there is a strong need for quality options of leisure and entertainment. Galaxy will fill that need for the aspirational customers."
Mr Atul Ruia of Galaxy Entertainment said: "With a strong partner like Pantaloon and with the vision of Mr Kishore Biyani, Galaxy will go from strength to strength. Growth in entertainment, food & beverages, the leisure business will be facilitated by the strong presence and availability of prime space that Pantaloon has in malls across the country. Galaxy will also gain from the management band width that Pantaloon has created".
For the quarter ended December 31, Pantaloon Retail (India) posted net sales of Rs 238.21 crore.