Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, said on Saturday that it was acquiring the Kishore Biyani-promoted Future Group’s retail, wholesale, logistics, and warehousing businesses for Rs 24,713 crore.
All about the Acquisition
Future Group
The acquisition is being done as part of the scheme in which Future Group is merging certain companies into Future Enterprises Limited (FEL).
Reliance Retail
The retail and wholesale undertaking of Future Group will be transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL)
The logistics and warehousing undertaking will be directly transferred to Reliance Retail Ventures Limited
How does it helps to Future Group?
As a result of this acquisition and transaction, Future Group will get a holistic solution to the challenges that have facing due to Covid and the macro economic environment.
The transaction will help FEL to expand with a focussed business model and a stronger balance sheet,” said the Future Group release.
About the deal
RRFLL has proposed to invest ₹1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity holding.
with this ₹400 crore 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.
The deal terms entail a merger of five listed units of Future Group Namely
- Future Consumer
- Future Retail
- Future Supply Chain
- Future Market Network
- Future Lifestyle Fashions
Shareholders Holdings
Future Consumer
For every 10 held, the Shareholders will receive 9 shares of FEL
Future Retail
For every 10 held, the Shareholders will receive 101 shares of FEL
Future Supply Chain
For every 10 held, the shareholders will receive 131 shares of FEL
Future Market Network
For every 10 held, the shareholders will receive 18 shares of FEL
Future Lifestyle Fashions
For every 10 held, the shareholders will get 116 shares of FEL.
Transaction Clearance
The deal was expected to be closed this month since many of Future Group’s lenders wanted the group to resolve the debt issues before the moratorium ends on 31 August.
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