Big Bazaar, Central, fbb, Nirgiris among other brands & assets to come under Reliance Retail.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited., has announced the acquisition of the retail and wholesale and the logistics and warehousing businesses of the Future Group, on a slump sale basis, for a lumpsum of ₹24,713 crore. The deal is subject to adjustments as set-out in the composite scheme of arrangement. Former IOC Chairman Sanjiv Singh joins Reliance as group presidentThe acquisition is being done as part of the scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limted (FEL).The retail and wholesale undertaking of Future Group is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL, while the logistics and warehousing undertaking is being transferred to RRVL.Besides, RRFLL will also invest ₹1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09% of post-merger equity, and ₹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 a further 7.05% of FEL.“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,” Isha Ambani, director, Reliance Retail Ventures Ltd., said. Reliance Retail said the acquisition of the retail, wholesale and supply chain business of the Future Group complements and makes a strong strategic fit into its business.Future Group’s portfolio composition in apparel, general merchandise and own FMCG brands will allow for a wider offering to its customers, it said.Analysts said the deal had happened at a time when Future Group was facing cash flow and debt servicing issues. While the lenders will get back their money, the vendors and employees will breathe easy in these uncertain times.
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