Reliance Extends Deadline To Seal Future Group Deal By Six Months
Reliance Industries Ltd.'s retail unit has extended the deadline to complete the acquisition of Future Group assets by six months after Amazon.com Inc.'s legal challenge delayed the transaction.
Reliance Retail Ventures Ltd. has extended the long-stop date for completion of the Rs 24,713-crore deal till March 31, 2022, Future Retail Ltd. said in a filing. Long stop refers to a timeframe within which all the conditions are met for a transaction to be completed.
Reliance Retail Ventures had first extended the deadline in April. The transaction still awaits regulatory clearances amid the cash-starved Kishore Biyani-led Future Group's year-long legal battle with Amazon.
Last week, the Mumbai bench of National Company Law Tribunal allowed Future Group firms to meetings with its shareholders and creditors to seek approval for the sale of assets to Reliance Retail Ventures. The court also dismissed the application filed by Amazon opposing the scheme of merger between 20 Future group companies, including six listed firms, with Reliance Retail Ventures, and Reliance Retail and Fashion Lifestyle Ltd.
Amazon is engaged in a clash with India's richest man Mukesh Ambani as both sides view Future Group assets as the key to success in India.
The outcome of the legal battle is also crucial for lenders as the Future Group owes them crore.