Mumbai (Maharashtra) [India], Aug 29 (ANI): Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, on Saturday announced that it is acquiring 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 arrangement.
The acquisition is being done as part of the scheme in which Future Group is merging certain companies carrying on the businesses into Future Enterprises Limited (FEL).
RRVL said in a release that the retail and wholesale undertaking of Future Group is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL. The logistics and warehousing undertaking of the Future Group is being transferred to RRVL.
RRFLL also proposes to invest Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 per cent of post-merger equity. RRFLL further proposes to invest Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 per cent of the issue price, will result in RRFLL acquiring further 7.05 per cent of FEL.
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 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.
This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals. (ANI)