Billionaire Mukesh Ambani's Reliance Industries Limited announced that its unit Reliance Retail Ventures Limited or RRVL has acquired Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for lump sum aggregate consideration of 24,713 crore Indian rupees.
Reliance specified that the 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 Limited (FEL).
As a part of the same Scheme, the Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited or RRFLL and the Logistics & Warehousing Undertaking is being transferred to RRVL.
RRFLL also proposes to invest 1,200 crore Indian rupees in the preferential issue of equity shares of FEL to buy 6.09 percent of post-merger equity and 400 crore Indian rupees in a preferential issue of equity warrants which, upon conversion and payment of balance 75 percent of the issue price, will result in RRFLL acquiring further 7.05 percent of FEL.(DPA)