Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries, has extended the completion of its deal with Kishore Biyani’s Future Group by another six months.
In financial parlance, the RRVL extended the ‘long stop date’ for the acquisition till September 30, 2021.
The previous long stop date to complete the transaction was March 31, 2021.
What is long stop?
The long stop refers to a timeframe in which all the conditions precedent for deal are met for the transaction to be completed. The transaction was to be completed on 31 March.
The deal is pending before the Supreme Court which has scheduled a hearing on 27 April.
Regulator filling read as
“Reliance Retail Ventures Limited (RRVL) has in exercise of the right provided thereunder, extended the timeline for Long Stop Date from March 31, 2021 to September 30, 2021 which has been duly acknowledged by Reliance Retail and Fashion Lifestyle Limited, wholly owned subsidiary of RRVL.”
Throwback
August last year, Reliance Industries’ subsidiary Reliance Retail Ventures Ltd announced to buy the retail assets of Future Group for nearly Rs 25,000 crore.
The deal has faced legal hurdles as e-commerce giant Amazon, which owns a 49 per cent stake in Future Coupons Pvt Ltd, a Future Group holding company, objected to the deal and approached the arbitration court in Singapore.
The arbitration court directed a temporary stay on the deal till its final decision.
The Delhi High Court last month stayed a recent single bench order upholding the Singapore Emergency Award (EA) and stalling Future Retail from going ahead with the Rs 24,713 crore deal with Reliance Retail.
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