The retail arm of Mukesh Ambani-controlled Reliance Industries Ltd (RIL), Reliance Retail Ventures Limited (RRVL) will be acquiring the retail, wholesale business and the logistics and warehousing business from Future Group.
The deal which is subject to approval from SEBI, CCI, NCLT, shareholders and creditors is worth consideration of Rs 24,713 crore.
The acquisition is being done as part of a scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL). The Retail and Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL. The retail business of Future Group includes the popular retail chain of Big Bazaar.
The Logistics and Warehousing Undertaking is being transferred to RRVL
As part of the deal, RRFLL has proposed to invest Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09% of post-merger equity, and Rs 400 crore in a preferential issue of equity warrants.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks