After secured creditors gave a thumbs down, Reliance calls off Rs 24,713 Cr deal with Future
- ByStartupStory | April 25, 2022
On Saturday, Reliance Industries Ltd said, the transaction cannot go ahead as secured creditors of the latter have voted against it, almost after 21 months of signing an agreement for a Rs 24,713-crore deal with Kishore Biyani-led Future Group in order to acquire its retail, wholesale, logistics and warehousing assets.
In a regulatory filing, Reliance said the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings have been intimated by Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme.
However, Future Market Networks and Future Consumer could not get the mandatory 75 percent approval from the secured creditors, which mainly include banks and financial institutions, of listed entities – Future Retail, Future Enterprises, Future Lifestyle Fashion Ltd.
Though, the deal with Reliance had been supported by the shareholders of the listed entities.
By e-commerce giant Amazon, the meetings were opposed, which in 2019, had picked up a 49 percent stake in a promoter firm of FRL, Future Coupons Pvt Ltd (FCPL).
Future Group in August 2020, announced the Rs 24,713-crore deal in order to sell 19 companies operating in wholesale, retail, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).
Under the RIL Group, RRVL is the holding company of all the retail companies.
By global ecommerce major Amazon the deal was vehemently opposed, on grounds that its 2019 agreement violated the deal through which it acquired a 49 percent stake in the promoter entity of FRL, FCPL, for about Rs 1,500 crore.
Over the development, from Reliance Retail, Future Group, and ecommerce major Amazon, which is opposing the deal, there had been no immediate comments.
In February, the operations of at least 350 stores of FRL and offered jobs to its employees had been taken over by Reliance Retail after the Kishore Biyani-led group failed to make lease payments to landlords.
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