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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 with 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 are 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.
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.
SEBI Gives Nod to RIL-Future Group Deal
