Reliance Retail acquires retail and wholesale business from the Future Group | HT Tech

Reliance Retail acquires retail and wholesale business from the Future Group

This acquisition comes as a part of the Scheme in which Future Group is merging certain companies carrying on the businesses into Future Enterprises Limited (FEL).

By: HT TECH
| Updated on: Aug 29 2020, 22:00 IST
Mukesh Ambani, chairman of Reliance Industries Ltd.
Mukesh Ambani, chairman of Reliance Industries Ltd. (MINT_PRINT)

Reliance Retail Ventures Limited (RRVL) has announced that it will be acquiring the Retail & Wholesale business and the Logistics & Warehousing business from the Future Group. The acquisition comes due to going concerns on a slump sale basis for lumpsum aggregate consideration of 24,713 crore. This acquisition comes as a part of the Scheme in which Future Group is merging certain companies carrying on the businesses into Future Enterprises Limited (FEL).

Besides this Reliance Retail and Fashion Lifestyle Limited (RRFLL) plans to invest 1,200 crore in the preferential issue of equity shares of FEL. This will result in acquiring 6.09 % of post-merger equity. It also proposes to invest INR 400 crore in a preferential issue of equity warrants which will result in RRFLL acquiring further 7.05% of FEL.

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"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," said Isha Ambani, Director, Reliance Retail Ventures Limited.

The acquisition is said to add to Reliance's retail business and help Reliance retail to providing support to small merchants during the challenging times.

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First Published Date: 29 Aug, 22:00 IST
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