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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.

  • 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.

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