It finally happened. What was being speculated for a long time now- Reliance Retail subsidiary of Reliance Industries taking over the retail business of the Future group got signed over the weekend. But it’s not just retail, Ambani is taking over wholesale, logistics as well as warehousing for a value of Rs.24,713 crore on a slump sale basis.
Under the scheme, the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL); the Logistics & Warehousing Undertaking is being transferred to RRVL; and
RRFLL also proposes to invest: (a) Rs1,200cr in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and (b) Rs400cr 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.
The transaction will take place after the merger of these key Future Group companies with Future Enterprises Ltd (FEL). Under the scheme of amalgamation, Future Enterprises will issue 9 shares for every 10 shares in Future Consumer; 116 shares for 10 shares in Future Lifestyle Fashions; 101 shares for 10 shares of Future Retail; 131 shares for 10 shares in Future Supply Chain and 18 shares for 10 shares held in Future Market Network.
Future Enterprises hit the 5% UC at Rs.21.20 the moment it opened for trade. Future Retail briefly skimmed the 20% of the day at Rs.162.30 and, Future Lifestyle Fashions too hit the 5% UC at Rs.152.35 within seconds of opening bell just like Future Consumer also did at 5% UC at Rs.12.05.