Shares in Future Group companies jumped nearly 10% to hit an intraday high of ₹ 80.50 a day on Tuesday, a day after a high court overturned an order that had stalled Future Group’s $3.4 billion deal to sell its retail assets to conglomerate Reliance Industries. Retail, in a setback for Future’s partner Amazon.com Inc, which had challenged the sale.
Future Group, the country’s second-largest retailer with over 1,700 stores, had agreed to sell its retail businesses to market leader Reliance last year.
In a fight between two of the worlds’ richest men – Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani – the US giant has argued that Future breached certain 2019 contracts by agreeing to the deal with Reliance. Future has denied any wrongdoing.
The court’s decision is the latest twist in the Future Group saga, coming after a New Delhi court last week sided with Future’s partner Amazon.com Inc’s challenge and put Future’s asset sale to Reliance Industries on hold, which led to an appeal from the Indian retail group.
A two-judge bench hearing Future’s appeal on Monday put on hold the New Delhi court’s previous ruling, two sources familiar with the proceedings said.
E-commerce giant Amazon has argued that Future breached certain 2019 contracts by agreeing to the deal with Reliance. The bench agreed that Future Retail was not a part of the 2019 agreement, the company said in a filing to the stock exchanges late on Monday.
Shares of Future Retail rose nearly 10% to 80.50 rupees in early trade, while Future Consumer, Future Enterprises and Future Lifestyle Fashions gained between 8.2% and 9.9%.
Future Retail is also set to report results for the quarter ended December 31 later in the day.