Mumbai: Reliance Industries Ltd (RIL) takeover of Future Group is not materializing.
Secured creditors of Future Group have voted against RIL acquiring Kishore Biyani-led group’s retail, wholesale, logistics and warehousing assets. Hence RIL on Saturday announced the Rs 24,713-crore deal won’t go through, almost 21 months after signing an agreement with Future Group.
Reliance said Future Group companies, comprising Future Retail Limited (FRL) and other listed companies involved in the scheme, have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.
“The secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented,” RIL said in a regulatory briefing.
Future Group companies had called meetings of their shareholders, secured and unsecured creditors to get the approval of proposed amalgamation and sale of assets as per the deal announced with Reliance Retail.
However, secured creditors — mainly banks and financial institutions — of listed entities like Future Retail, Future Enterprises, Future Lifestyle Fashion Ltd, Future Market Networks and Future Consumer failed to get the mandatory 75 per cent approval.
The shareholders of listed entities had supported the deal with Reliance.
The meetings of Future Group companies were opposed by Amazon, which had picked up a 49 per cent stake in Future Coupons Pvt Ltd (FCPL) in 2019.
Amazon had vehemently opposed the deal with RIL when Future Group announced it in August 2020 on grounds that it violated the 2019 agreement through which Amazon acquired 49 per cent stake in FCPL for approximately Rs 1,500 crore.
