Reliance Calls Off ₹ 24,700 Crore Retail Deal With Future Group After Secured Creditors Voted Against It
The deal cannot be implemented because secured creditors – primarily banks and financial institutions – of several listed entities of the Future Group rejected the sale worth Rs 24,713 crore, Reliance Industries Ltd (RIL) said in a regulatory filing on Saturday.
Future Group announced the sale of 19 companies in the retail, wholesale, logistics, and warehousing segments to Reliance Retail Ventures Ltd (RRVL) for Rs 24,713 crore in August 2020. The scheme of arrangement for the transfer of Future Group’s retail & wholesale business, as well as its logistics and warehousing business, 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, could not be implemented, RIL said in a filing with stock exchanges on Saturday.Indeed, Reliance said, “Further to our notice to stock exchanges dated August 29, 2020 on the subject, we wish to inform you that the Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of their shareholders’ and creditors’ voting on the scheme of arrangement at their respective meetings.”
According to these results, FRL’s shareholders and unsecured creditors voted in favour of the plan. The secured creditors of FRL, on the other hand, voted against the plan. As a result, RIL added, the subject scheme of arrangement cannot be implemented.
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