The above acquisition is being done as part of the Scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises (FEL). As a part of the same Scheme:
(i) the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle (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) Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and
(b) Rs 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.
The acquisition of the retail, wholesale and supply chain business of the Future Group complements and makes a strong strategic fit into Reliance's retail business. This will help Reliance retail to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times.
Future Group's portfolio composition in apparel, general merchandise and own FMCG brands will allow for a wider offering to its customers.
This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals.
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