KOLKATA: The RP-Sanjiv Goenka (RPG) Group is in talks with Chinese e-commerce large Alibaba, along side Amazon, for divesting 10-15% stake in its arm Spencer's Retail.
Spencer's may be indexed on the bourses in November after its demerger from CESC. The National Company Law Tribunal (NCLT) had authorized a demerger in March this year, but the formal sanction came in October.
It is learnt that the top management of the RPG Group has already had a couple of rounds of dialogue with Alibaba and Amazon for a imaginable stake dilution.
This has assumed significance because the United States e-commerce large got a foothold in Aditya Birla Retail chain More thru a structured deal in September this year. Amazon owns around 49% stake in Witzig Advisory, which bought More from the Birlas. Samara Capital, an Indian mission capital fund, holds 51% in Witzig.
When asked in regards to the development, RPG Group chairman Sanjiv Goenka stated that he does not touch upon speculation. However, resources stated that Alibaba executives were in Kolkata just lately for a discussion on imaginable funding alternatives in Spencer's. Retail trade insiders stated that after the Amazon-More deal and Flipkart takeover via Walmart, Alibaba is actively in search of a retail footprint in India. The possibility for a pan-India presence may be restricted. There are few players like Future Retail and DMart, along side Spencer's, in the sector.
Spencer's may be indexed on the bourses in November after its demerger from CESC. The National Company Law Tribunal (NCLT) had authorized a demerger in March this year, but the formal sanction came in October.
It is learnt that the top management of the RPG Group has already had a couple of rounds of dialogue with Alibaba and Amazon for a imaginable stake dilution.
This has assumed significance because the United States e-commerce large got a foothold in Aditya Birla Retail chain More thru a structured deal in September this year. Amazon owns around 49% stake in Witzig Advisory, which bought More from the Birlas. Samara Capital, an Indian mission capital fund, holds 51% in Witzig.
When asked in regards to the development, RPG Group chairman Sanjiv Goenka stated that he does not touch upon speculation. However, resources stated that Alibaba executives were in Kolkata just lately for a discussion on imaginable funding alternatives in Spencer's. Retail trade insiders stated that after the Amazon-More deal and Flipkart takeover via Walmart, Alibaba is actively in search of a retail footprint in India. The possibility for a pan-India presence may be restricted. There are few players like Future Retail and DMart, along side Spencer's, in the sector.
After Amazon, Alibaba tries to shop at Spencer's
![After Amazon, Alibaba tries to shop at Spencer's]()
Reviewed by Kailash
on
October 14, 2018
Rating:
