Reliance Industries’ retail arm RRVL to amass Future Group companies for Rs 24,713 cr



The Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd will acquire the retail, wholesale, logistics and warehousing businesses of the Future Group on a slump sale basis

Reliance Industries Ltd on Saturday announced that its retail arm Reliance Retail Ventures Ltd (RRVL) is acquiring Future Group businesses for Rs 24,713 cr to add to its fast expanding retail business and bolster e-commerce.

“Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore, subject to adjustments as set out in the composite scheme of the arrangement,” the company said in a statement.

A slump sale is when a business is sold for a lump sum consideration without values being assigned to the individual assets and liabilities.

Under the scheme, Future Group will merge certain companies carrying on the abovementioned businesses into Future Enterprises Limited (FEL).

As part of the same Scheme:

(i) the retail and wholesale undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL;

(ii) the logistics and warehousing undertaking is being transferred to RRVL; and

(iii) RRFLL also proposes to invest:

(a) Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 percent of post-merger equity; and

(b) Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 percent of the issue price, will result in RRFLL acquiring.

Isha Ambani, director, Reliance Retail Ventures, said: “With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India.”

“We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country,” she added.

The acquisition complements and makes a strong strategic fit into Reliance’s retail business, the Reliance Retail Ventures release said.

“This will help Reliance retail to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times,” the release said.

Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.



www.navaindia.com
Merchant Export Marketplace
Best Export Training center

GET THE BEST EXPORT DEALS IN YOUR INBOX

Don't worry we don't spam

NavaIndia.com
Reset Password
Compare items
  • Total (0)
Compare
0
WhatsApp chat
%d bloggers like this: