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 hunch sale foundation
Reliance Industries Ltd on Saturday introduced that its retail arm Reliance Retail Ventures Ltd (RRVL) is buying Future Group businesses for Rs 24,713 cr to add to its quick increasing retail enterprise 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 corporate mentioned in a press release.
A hunch sale is when a enterprise is offered for a lump sum consideration with out values being assigned to the person property and liabilities.
Under the scheme, Future Group will merge sure firms carrying on the abovementioned businesses into Future Enterprises Limited (FEL).
As a part of the identical Scheme:
(i) the retail and wholesale endeavor is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a completely-owned subsidiary of RRVL;
(ii) the logistics and warehousing endeavor is being transferred to RRVL; and
(iii) RRFLL additionally proposes to make investments:
(a) Rs 1,200 crore within the preferential difficulty of fairness shares of FEL to acquire 6.09 % of submit-merger fairness; and
(b) Rs 400 crore in a preferential difficulty of fairness warrants which, upon conversion and fee of stability 75 % of the difficulty worth, will lead to RRFLL buying.
Isha Ambani, director, Reliance Retail Ventures, mentioned: “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 enhances and makes a powerful strategic match into Reliance’s retail enterprise, the Reliance Retail Ventures launch mentioned.
“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 discharge mentioned.
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