Reliance extends deadline to enter into agreement with Future

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On Friday, the debt-laden Future Group was given a hiatus to complete its asset sale to Reliance Retail Ventures Ltd, the company headed by Mukesh Ambani extending the deal’s deadline by six months.

In August 2020, Reliance Retail and Future Retail had set a long shutdown date of March 31, 2021, to complete the ??Transaction of 24,713 crore, which was initially extended until September 30 in the context of the ongoing Future-Amazon legal fight. The long stop date refers to a period within which all the conditions necessary for the transaction must be met for the transaction to be concluded.

“Reliance Retail Ventures Ltd (RRVL) has, in the exercise of the right provided therein, extended the deadline for the extended shutdown date from September 30, 2021 to March 31, 2022, which has been duly recognized by Reliance Retail and Fashion Lifestyle Ltd., a wholly owned subsidiary of RRVL, ”Future Enterprises Ltd. said in a statement to ESB.

The scheme of arrangement between Future and Reliance Retail involves the consolidation of the retail, wholesale, logistics and warehousing assets of Future Group into a single entity – Future Enterprises Ltd – which would then be transferred to Reliance Retail.

The deal was challenged by Amazon, an investor in Future Coupons, which is a shareholder of Future Retail Ltd.

In August 2019, Amazon purchased a 49% stake in Future Coupons Ltd (which owns 7.3% of the capital of Future Retail through convertible warrants), with the right to purchase the flagship product Future Retail after a period of 3 to 10 years.

Amazon contacted the Singapore International Arbitration Center (SIAC), which issued an interim ruling barring Future Retail from closing the deal.

Amazon and Future are now fighting a legal battle in the Supreme Court, which recently ruled in favor of Amazon, ruling the SIAC award to be valid and enforceable under Indian law.


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