MUMBAI : Retail oil conglomerate Reliance Industries Ltd (RIL) is said to be in the race to acquire Debenhams, a British multinational retailer that operates department stores in the UK with franchise stores in other countries, Sky News reported Wednesday.
“The Reliance Retail empire, which last year bought world-famous British toy store Hamleys, is among a small number of parties in discussions with Debenhams advisers about acquiring some or all of the 242-year-old retailer,” Sky said. News in its report adds that people close to the process had indicated that the chain was eager to agree to an acquisition by the end of September. However, a better-than-expected negotiation has relaxed the urgency of that schedule in recent weeks, they said.
A Debenhams auction has been in administration since April, and Lazard’s investment bankers are responsible for coordinating discussions with potential buyers, Sky News said.
RIL’s subsidiary, Reliance Brands, had acquired British toy retailer Hamleys last July to ₹620 crore on a cash deal. Reliance Brands operates joint ventures with global brands.
Ambani, the world’s fourth richest man, is betting the future of his company on digital and retail platforms, reducing the emphasis from his core refining and chemicals business. Last month, RIL acquired the retail and wholesale business and the logistics and warehousing business of rival Future Group for a cash consideration of ₹24,713 crore, expanding its reach in the country’s retail market. It is also expanding into the online space through its new trading strategy through JioMart.
To further boost its plans, Reliance Retail said Wednesday that it has raised ₹Rs 5,550 crore by selling a 1.28% stake in its retail business to US private equity (PE) company KKR and Co. as India’s most valuable company creates a war chest for its boost to electronic commerce.
The latest transaction, the second in about two weeks, brings full funding to Reliance Retail Ventures Ltd (RRVL) to ₹13,050 crore and follow a record ₹Rs 1.52.056 crore of investments in its digital assets unit, Jio Platforms Ltd, earlier this year.
KKR’s investment values RRVL at an equity value of ₹4.21 trillion, RIL said. The PE firm had also bought a 2.32% stake in Jio Platforms for ₹11,367 crore. On September 9, California-based private investment fund Silver Lake acquired a 1.75% stake in RRVL ₹7,500 crore.
.
