Reliance Retail currently operates about 11,784 stores nationwide.
The agreement is positive for all shareholders of all branches of Future Group, except Future Enterprises.
- News18.com
- Last update: August 30, 2020 8:38 AM M. IST
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Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, said on Saturday that it was acquiring Future Group’s retail, wholesale, logistics and warehousing businesses, promoted by Kishore Biyani, on a retail basis for Rs 24,713 crore. .
When a business is sold for a lump sum consideration with no assigned values to individual assets and liabilities, it is called a recession sale. The value of the transaction is subject to the adjustments established in the agreement’s compound scheme.
Future Group will merge certain companies doing the aforementioned business into Future Enterprises Limited (FEL), under the scheme, according to a report by CNBCTV18.
The report analyzes the exchange rate for the merger of the different branches of Future Group listed on Future Enterprises. A quick glance indicates that the deal is positive for all shareholders in all branches of Future Group, except Future Enterprises.
Future Consumer shareholders will receive 9 FEL shares for every 10 they own. This values the future consumer at Rs 18, compared to their last closing price of Rs 11.5 (57 percent premium).
For every 10 held, Future Lifestyle Fashions shareholders will get 116 shares of FEL. This puts the value of Future Lifestyle Fashions at Rs 232 compared to its last closing price of Rs 145 (60 percent premium).
Future retail shareholders will receive 101 shares of FEL, for every 10 they own. Compared to its latest closing price of Rs 135.20 (49 percent premium), this values Future Retail at Rs 202. Future Supply Chain shareholders will receive 131 shares of FEL for every 10 they own. This values the future supply chain at 262 rupees compared to its last closing price of 151 rupees (74 percent premium), according to the report.
And finally, Future Market Network shareholders will receive 18 FEL shares for every 10 they own. This puts Future Market Network’s value at Rs 36 compared to its last closing price of Rs 27 (35 percent premium).
Disclaimer:Reliance Industries (RIL), which also owns Reliance Retail, is the sole beneficiary of the Independent Media Trust, which controls Network18 Media & Investments.
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