Lawstreet Journal

Reliance Buys Future Group’s Retail, Wholesale & Logistic Businesses For ₹24,713 crores

Lawstreet Journal 2 Sep 2020 8:26pm

Image courtesy: Lawstreet Journal Business Reliance Buys Future Group’s Retail, Wholesale & Logistic Businesses For ₹24,713 crores

Mukesh Ambani led Reliance Industries’ subsidiary Reliance Retail Ventures Limited (RRVL) on Sunday (August 30,2020) announced to acquire the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group, the owner of the largest retail chain Big Bazaar and in-house brand FBB, for Rs 24,713 crores.

The acquisition has been done as part of the scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL).

Future Enterprises will subsequently sell by way of a slump sale the retail and wholesale business such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL).

“As a result of this reorganization and transaction, Future Group will achieve a holistic solution to the challenges that have been caused by COVID and the macroeconomic environment. This transaction takes into account the interest of all its stakeholders including lenders, shareholders, creditors, suppliers, and employees giving continuity to all its businesses", said Kishore Biyani, Group CEO, Future Group.

RRFLL has also proposed to invest ₹1,200 crores in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity holding; and ₹400 crores in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in RRFLL acquiring further 7.05% of FEL.

According to a study by Boston Consulting Group and Retailers’ Association India. the Reliance Retail – Future Group… Continue Reading...

Tagged: Reliance Industries   Reliance Industries Limited   Reliance Industry  
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