After secured creditors – mainly banks and financial institutions – from several of Future Group’s listed entities rejected the sale worth Rs 24,713 crore, the deal cannot be executed, Reliance Industries Ltd (RIL) said in a regulatory filing on Saturday.
In August 2020, Future Group announced the Rs 24,713 crore deal to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).
On Saturday, RIL said in an application to exchanges that the agreement to transfer the retail and wholesale and logistics and warehousing activities of Future Group to Reliance Retail Ventures Limited (RRVL), a subsidiary of the company and Reliance Retail and Fashion Lifestyle Limited ( RRFLL), a wholly owned subsidiary of RRVL, cannot be implemented.
Indeed, Reliance said that, further to our notification to the exchanges of 29 August 2020 on this subject, we would like to inform you that the Future Group companies, comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have announced the results of the composition vote by their shareholders and creditors at their respective meetings.
According to these results, FRL’s shareholders and unsecured creditors voted in favor of the scheme. But FRL’s secured creditors voted against the settlement. In view of this, the present regulation cannot be implemented, according to RIL.