American e-tailer Amazon is joining hands with Goldman Sachs and Samara Capital to acquire Aditya Birla Group’s food and grocery chain More, The Economic Times reported.
More currently has a valuation between Rs 4,500 and 5,000 crore.
Samara and Aditya Birla Retail Ltd signed an “exclusivity” agreement in June for bilateral negotiations, the report said. As a result, Samara reached out to Goldman Sachs and Amazon to join the consortium, added the report.
Goldman Sachs Special Situations Group is likely to be the investment bank for this deal, sources told the paper, adding that the three are planning to float a separate company or special purpose vehicle (SPV) so that Amazon will be able to pick up a 49 percent stake as the “strategic partner”.
The legal norms allow foreign companies to hold up to 49 percent in multi-brand retailers like More.
The final structuring exercise, as per the report, is ongoing and the formal announcement is expected to be at this month or early next month.