Future Retail takeover can’t be implemented, says RIL in filing
Reliance Industries Limited (RIL) has called off the deal with Future Retail Ltd (FRL) after FRLs secured creditors voted against the scheme.
Almost 21 months after signing an agreement for an Rs.24,713-crore deal with Kishore Biyani-led Future Group to acquire its retail, wholesale, logistics, and warehousing assets, Reliance Industries Ltd on Saturday said the transaction cannot go ahead as secured creditors of the latter have voted against it.
In a filing with the stock exchanges, RIL said, “The Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.
“As per these results, the shareholders and unsecured creditors of FRL have voted in favour of the scheme. But the secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented.”
The Future Group companies had called meetings of their shareholders, secured and unsecured creditors this week to get the approval of the scheme of amalgamation and sale of assets as per the deal announced with Reliance Retail.
However, secured creditors, which mainly include banks and financial institutions, of listed entities – Future Retail, Future Enterprises, Future Lifestyle Fashion Ltd, Future Market Networks, and Future Consumer — could not get the mandatory 75 percent approval.
The scheme of arrangement was for the transfer of retail and wholesale business and the logistics and warehousing business of Future Group to Reliance Retail Ventures Limited (RRVL), a subsidiary of the company, and Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL, for Rs.24,371 crore.
The deal was opposed by Amazon and intense legal battles have been waged ever since the deal was announced.
[With Inputs from IANS]
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Good development, seller does not know to whom he is selling & buyer does not know if he is going to buy. Seller cannot stand on his own legs. Indian excel in starting & selling off. Never to run it like professionals for generations to come. Just capitalize the money & go (vanish into) Hawaii islands.
This decision by the Banks has sent all the employees of FUTURE GROUP INDUSTRIES to the street in search new JOBS. These hapless people who believed the Govt. will certain make AMAZON OUT OF THIS DEAL ARE NOW UNEMPLOYED.
How does the Govt provide alternate jobs to thousands of poor employees??
Are the Reliance Retail a US or UK Based Company ? If they were I think the DEAL WOULD HAVE BEEN APPROVED.