Peter England board nod to merger proposal helps Pantaloon Retail rally on bourses

Pantaloon Retail's shares rallied on the bourses on Monday after Aditya Birla group firm Peter England Fashions & Retail's board approved merger of Pantaloon's format business and fixed the share swap ratio at 1:5.

According to the share swap ratio, for every five shares of Pantaloon, the shareholders will get one Peter England share.

This marks a step closer towards Aditya Birla Group's proposed acquisition of majority stake in Kishore Biyani-led group's flagship Pantaloon format apparel retail business unit.



After a positive opening, shares of the company jumped 5.53 per cent to Rs 151.50 on the Bombay Stock Exchange (BSE). At 12.53 pm, the shares were trading 4.91 per cent higher on BSE at Rs 150.60.

On the National Stock Exchange, the Pantaloon Retail scrip was trading 4.94 per cent higher at Rs 150.70.

"The board of directors of Peter England Fashions and Retail Ltd (PEFRL), a wholly-owned subsidiary of Aditya Birla Nuvo Ltd approved the scheme of arrangement for the demerger of 'Pantaloons Format' business into PEFRL," Aditya Birla group had said in a statement on Sunday.

With inputs from PTI