Future Group-Reliance deal gets Sebi nod

Updated : January 20, 2021 11:36 PM IST

The Securities and Exchange Board of India (Sebi) on Wednesday granted approval to the deal between Kishore Biyani-led Future Group and Reliance Retail, an arm of Mukesh Ambani-led RIL.

Biyani had entered into the Rs 24,713 crore deal with Reliance Retail in August 2020. Under the agreement, Future Group was to sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Retail Ventures (RRVL).

In its letter of approval, the regulator listed a number of conditions in accordance to the Composite Scheme of Arrangement and also referred to the apprehensions raised by Amazon.

“Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme," the regulator said.

“Company shall ensure that proceedings pending before SEBI against the entities part of the promoter/promoter group or are directors of the companies involved in the scheme, should be highlighted in the scheme document filed before National Company Law Tribunal (NCLT)," it said.

“Company shall ensure that any future disputes, complaints, regulatory actions or proceedings, or orders issued therein involving the draft scheme if any, shall be brought to the notice of shareholders prior to the approval by NCLT.”

74.2 percent of the business value of the Future Enterprises Limited post amalgamation of all the Transferor companies is getting transferred to Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited and these two companies would not be seeking listing post the scheme of arrangement.

“The company is advised that the observations of SEBI/Stock Exchanges shall be incorporated in the petition to be filed before the National Company Law Tribunal (NCLT) and the Company is obliged to bring the observations to the notice of NCLT," it added.

The company should ensure that suitable disclosure about the latest financials of the companies involved in the scheme being not more than 6 months old is done before filing the same with the National Company Law Tribunal.

“Company is advised that the observations of SEBI/Stock Exchanges shall be incorporated in the petition to be filed before National Company Law Tribunal (NCLT) and the company is obliged to bring the observations to the notice of NCLT."

(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

Published : January 20, 2021 11:34 PM IST

Future Group-Reliance deal gets Sebi nod

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