Become Our Partner
News

Reliance Retail acquires Future Group for 24,713 Crores

As per information collected from stock exchanges, Reliance Retail Ventures Limited (RRVL), subsidiary of Reliance Industries Limited, is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for aggregate consideration of INR 24,713 crore.

Scheme of the deal

1. The Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL.

2. The Logistics & Warehousing Undertaking is being transferred to RRVL

3. RRFLL will also invest:

(a) INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity.

(b) INR 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.

Benefit to Reliance

The acquisition of the future Group complements and makes a strong strategic fit into Reliance’s retail business.

This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals.

2 Comments
  • Market Wizard
    3:48 AM, 30 August 2020

    What does this acquisition mean for Reliance Retail?

    1. Control over 40% of India’s organized retail market.

    2. Will become 7 times bigger than DMart.

    3. 13,600 Stores across grocery, electronics, and apparel.

    4. Will have revenue in excess of 1.89 Lakh Crores.

    5. Retail to contribute a fourth to RILs sales, next only to refining.

    Source: ET

  • Market Wizard
    4:15 PM, 29 August 2020

    The Real strategy which Ambani’s know the best , SOLD JIO STAKE at Extremely high valuation and bought Future Group at 50% distressed valuation.

Leave a Reply

Become Our Partner
error: Content is protected !!