Vishal Retail board approves MOU with US-based PE player TPG
24 Jun 2010
In a move that is being seen as a step towards a possible stake sale to US-based private equity major the Texas Pacific Group (TPG), debt-ridden Vishal Retail board has approved the terms of a memorandum of understanding (MoU) with the private equity firm in accordance with a debt restructuring programme approved by its lenders.
The company has however not announced the terms of the MoU or the timing of the understanding with the private equity player.
According to Vishal Retail's statement, the board of directors has considered and approved the terms of MoU with TPG VW in accordance with corporate debt-restructuring (CDR) scheme approved by the lenders of the company.
The company however said the terms of MoU would be subject to negotiation of and finalisation of definite agreements or documents.
''Ram Chandra Agarwal, chairman and managing director of the company, has initiated the copies of the MoU,'' Vishal Retail said.
A possible stake purchase by TPG had also been a subject of speculation in the past.
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