The company has revealed that it is buying the latter retail, wholesale and logistics and warehousing business in the country.
Reliance Retail has announced that it is acquiring Future Group operations in India. The company has revealed that it is buying the latter retail, wholesale and logistics and warehousing business in the country.
Reliance Retail has bought the Future Group for a price of Rs 24,713 crore. The acquisition is a part of Future Group's decision of merging certain companies and carrying on the businesses into Future Enterprises Limited (FEL). As per the scheme, Reliance Retail and Fashion Lifestyle Limited will be taking over the retail and wholesale business of Future Group and the logistics and warehousing businesses will be also given to Reliance Retail.
Reliance Retail proposed to invest Rs 1200 crore in the preferential issue of equity shares of Future Enterprises Limited to acquire 6.09 per cent of post-merger equity. Furthermore, the company will invest Rs 400 in a preferential issue of equity warrants which after conversion and payment of balance 75 per cent of the issue price, will result in RRFLL acquiring further 7.05 per cent of Future Enterprises Limited. The acquisition is subject to approvals from SEBI, CCI, NCLT, shareholders, creditors and others.
Commenting on the acquisition, Isha Ambani, Director, Reliance Retail Ventures Limited, 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 has 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.”
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