Mumbai : Reliance Retail Ventures Limited (RRVL), subsidiary of Reliance Industries Limited on Saturday announced that it is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for INR 24,713 crore. The deal subject to adjustments as set-out in the composite scheme of arrangement (Scheme).
The 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 Limited (FEL). As a part of the scheme the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL. Also the Logistics & Warehousing Undertaking is being transferred to RRVL.
Meanwhile, RRFLL will invest INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity and INR 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 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. 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” Ms. Isha Ambani, Director, Reliance Retail Ventures Limited, said.