In 2020, Future Group had signed a deal to sell its retail, logistics and warehousing operations to Reliance Retail, a subsidiary of billionaire Mukesh Ambani-controlled RIL.
Future Group convened shareholders’ and creditors’ meetings in April to seek their approval for the proposed `24,713 crore deal with Reliance Industries (RIL).
The publicly traded companies, including Future Enterprises, Future Retail, Future Consumer, Future Lifestyle Fashions and Future Supply Chain, will hold meetings on April 20 and April 21, according to separate filings by the companies.
The meetings would be held via video conferencing and other virtual means.
This follows an order from the National Company Law Tribunal (NCLT) on Feb. 28, following a February Supreme Court order that allowed Future Group companies to call a shareholders’ and creditors’ meeting, she added. .
In 2020, Future Group had signed a deal to sell its retail, logistics and warehousing operations to Reliance Retail, a subsidiary of billionaire Mukesh Ambani-controlled RIL.
However, the deal has been embroiled in a legal battle after US e-commerce major Amazon opposed the settlement, citing the 2019 agreement it entered into with Future Group. Amazon, which was acquired, had a 49% stake in Future Coupons, Future Retail’s promoter entity, for around Rs 1,500 crore, allegedly violating certain terms in the deal signed in 2019.
Earlier this week, Future Retail said it was determined to get back the hundreds of stores acquired by the Reliance Group, claiming Reliance’s “drastic and unilateral action” had come as a surprise.
In a regulatory filing, FRL said the board has strongly objected to such action by Reliance Group and has asked it to reconsider all other actions initiated in recent days.
In an earlier filing this month, FRL had said Reliance Retail, a subsidiary of Reliance Retail Ventures (RRVL), had issued notices to sublet 947 stores from the Future Group, which it plans to acquire and rebrand. to end.
The company has received cancellations for 342 large format stores – including Big Bazaar, Fashion at Big Bazaar and 493 small format stores such as easyday and Heritage stores. Furthermore, another group company Future Lifestyle Fashions said it has received cancellation notices for the company’s 34 “Central” stores and 78 “Brand Factory” stores. These stores – LFR, small retail, ‘Central’ and ‘Brand Factory’ – contributed approximately 55%-65% of the company’s total retail sales from operating activities.
Reliance would also include the entire 30,000 employees of Future Retail and Future Lifestyle, including the employees of the other stores. Future Retail and Future Lifestyle together have 1,700 stores, including the popular Big Bazaar stores.
This post Future group companies convene shareholders’ meeting on April 20
was original published at “https://www.financialexpress.com/industry/future-group-companies-to-convene-shareholders-meeting-on-april-20/2465553/”
