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Mukesh Ambani's Reliance Industries Ltd on Saturday announced the acquisition of businesses of Kishore Biyani's Future Group for ₹24,713 crore to add to its fast expanding retail business and bolster e-commerce to take on the competition from Jeff Bezos' Amazon.
Reliance Retail will now have access to close to 1,800 stores across Future Group's Big Bazaar, FBB, Easyday, Central, Foodhall formats, which are spread in over 420 cities in India.
As a part of the same Scheme:
(i)the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL
(ii)the Logistics & Warehousing Undertaking is being transferred to RRVL; and
(iii) RRFLL also proposes to invest:
(a) ₹1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and
(b) ₹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.
Reliance Retail buys Future Group's businesses for ₹24,713 crore
Reliance Retail will now have access to close to 1,800 stores across Future Group's Big Bazaar, FBB, Easyday, Central, Foodhall formats, which are spread in over 420 cities in India.
As a part of the same Scheme:
(i)the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL
(ii)the Logistics & Warehousing Undertaking is being transferred to RRVL; and
(iii) RRFLL also proposes to invest:
(a) ₹1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and
(b) ₹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.
Reliance Retail buys Future Group's businesses for ₹24,713 crore
