Future Shares Hit Record Low on Court Hurdle for Reliance Deal
(Bloomberg) -- Shares of Indian supermarket-operator Future Retail Ltd. hit a record low and bonds declined after an Indian court raised additional hurdles to its purchase by billionaire Mukesh Ambani’s Reliance Industries Ltd.
Future Retail shares slumped as much as 10% to an all-time low of 55.85 rupees in Mumbai trading, while its dollar notes maturing in 2025 dropped 2.7 cents to about 82.7 cents as of 1 pm in Hong Kong, the biggest drop in almost a month, Bloomberg-compiled prices show.
The selloff in Future Retail follows the Delhi High Court ruling Thursday that said a previous verdict by a Singapore arbitration court that halted the asset sale is enforceable in India. Amazon.com Inc., which had partnered with Future Group in India, has disputed the sale to Reliance, claiming it violates a previous partnership contract.
READ: Ambani’s $3.4 Billion Retail Deal Stalled by Indian Court
Other Future Group companies including Future Consumer Ltd. and Future Lifestyle Fashions Ltd. also tumbled by about 10%, while Future Supply Chain Solutions Ltd. fell 5.2%.
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