Reliance Industries led by Billionaire Mukesh Ambani is reportedly in the final stage of negotiation with Kishore Biyani-led Future Group to acquire the retail business. A recent report in Mint cited sources that RIL is close to buying Future Group’s retail assets for a deal close to Rs 24,000-27,000 crore.
The sources revealed that five listed entities, including Future Retail Ltd, Future Consumer, Future Lifestyle Fashions, Future Supply Chain and Future Market Networks, will be merged into Future Enterprises Ltd (FEL) before the sale.
Note that according to research firms’ reports, Future Retail manages over 1,500 stores in India under various formats, including Big Bazaar, Fashion at Big Bazaar (FBB), ezone, and Foodhall. RIL will take over the retail, supply-chain and related businesses of Future Group which will put a full stop on the retail business.
Future Group has accumulated heavy debt over the years. As of 30 September 2019, the debt of Group’s listed companies was Rs 12,778 crore.
As per earlier reports, discussions were underway for a haircut of about 30% on outstanding dues of over Rs 6,000 crore and refinancing part of the borrowings for a further tenure of 5-7 years.
On July 28 10:53, shares of Future Retail were trading at Rs 105.35 on the BSE with only buyers situation.