A deal worth Rs 24713 crore has been canceled between Mukesh Ambani’s company Reliance Retail and Kishore Biyani-backed Future Group’s Future Retail. With this, Mukesh Ambani’s dream of becoming the retail king has also almost been broken. However, Ambani can now play a new bet to take over the future.
According to a report in Economic Times, Reliance Retail is set to participate in the bidding process for Future Group properties as part of the insolvency resolution process. According to sources, ‘Reliance was ready to go ahead with the proposed deal till the last day. So now if the resolution process under IBC starts, Reliance is ready to buy its assets.
Also read- Big change in the rules for filing ITR: TDS / TCS is more than ₹ 25,000, so now it is necessary to file ITR
What did Reliance Industries say?
Reliance on Saturday canceled its deal to acquire Future Group’s retail, wholesale, logistics and warehousing businesses after most of Future Retail’s secured creditors voted against the plan. Regarding the cancellation of the deal with Future Group, Reliance Industries told the stock exchanges that Future Retail Limited (FRL) and other companies of the Future Group have informed about the results of the meetings held for the approval of this deal. According to this, the deal has been accepted by a majority of shareholders and unsecured lenders but the offer has been rejected by secured creditors. In this situation the deal cannot be extended. Banks will now approach the National Company Law Tribunal (NCLT) to initiate resolution proceedings under the Insolvency and Bankruptcy Code (IBC).
Also read- Competition to sell the shares of this company after the cancellation of the deal of ₹ 24,713 crore, all the shares in the lower circuit
What is the company’s plan
According to sources, Reliance can reduce the valuation now as compared to earlier. The intangible assets of Future Group such as brand names are likely to decline in value due to the time taken in the resolution process.
According to sources, the Reliance-Future deal was worth Rs 24,713 crore, though Reliance was looking to adjust Future Group’s outstanding of Rs 6,000 crore in the last 15-16 months as outstanding payments towards rent, purchase of inventory and working capital. Reliance will not support any loan to Future Group as it is now headed for IBC resolution.