Reliance Future Group deal Calls Off
Reliance Industries on Saturday said its Rs 24,713-crore deal with the Future Group cannot go ahead.
Reliance said Future Group companies have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.
In the secured creditors e-voting, 69.29 per cent of the votes of 11 lenders were against the proposal to sell the assets to the RIL subsidiary.
Let us tell you that this deal was between the retail and wholesale business of RIL's subsidiary Reliance Retail Ventures Limited Future Group and the logistics and warehousing business.
In August 2020, Future Group had announced the sale of 19 companies operating across retail, wholesale, logistics and warehousing segments to RRVL.
At the Future Group shareholders' meeting, 85.94 per cent votes were in favor of the sale of assets to RIL and 14.05 per cent votes were against the proposal.
Future Group said that about 82.75 percent of Future Lifestyle Fashion (FLF) secured creditors rejected the offer.
In this deal to be done between Future Group Reliance Retail Ventures Limited (RRVL), 81.91 percent shareholders supported it.
In this deal of Future Group and Reliance, major banks were not in favor of the proposal citing ambiguity on loan recovery.
Banks are not convinced about this as FRL has proposed that loans worth over Rs 12,000 crore will be transferred to RIL.
Reliance began taking over rental leases to hundreds of stores of FRL and Future Lifestyle Fashion Ltd amid litigation and arbitration in India and Singapore.
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