Reliance Industries Buys Future Group's Retail Business For Rs 24,713 Crore

Reliance Industries Limited (RIL) on Saturday announced that it has acquired the retail, wholesale and logistics businesses of Kishore Biyani led-Future Group for Rs 24,713 crore.

"Reliance Retail Ventures Limited (RRVL), subsidiary of Reliance Industries Limited, today announced that it is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore, subject to adjustments as set-out in the composite scheme of arrangement (Scheme)," the company said.

The "scheme" includes the merger of select Future Group companies into Future Enterprises Limited (FEL).

The statement explained that as part of the deal:

1. the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL
2. the Logistics & Warehousing Undertaking is being transferred to RRVL; and
3. RRFLL also proposes to invest:

• Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 percent of post-merger equity; and
• Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 percent of the issue price, will result in RRFLL acquiring further 7.05 percent of FEL.

"The acquisition of the retail, wholesale and supply chain business of the Future Group complements and makes a strong strategic fit into Reliance's retail business. 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," RIL said.

"This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals," it added.