Reliance Industries has stated that it will complete the deal with Future Group without delay after a Singapore arbitration panel ruled in favour of Amazon to stay the stake sale on Saturday. In a statement issued late on Saturday, Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries, said that it entered into the transaction under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
"Reliance Retail Ventures Limited (RRVL) is informed of an interim order passed by the Emergency Arbitrator in the arbitration proceedings invoked by Amazon under a shareholders' agreement with the promoters of Future group. RRVL has entered into the transaction for acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law," Reliance Retail said.
"RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay," the company further said.
On Saturday, a Singapore arbitration panel stayed Future Group's $3.38 billion asset sale to Reliance Industries on a plea by Amazon. The e-commerce major had alleged the deal between the Indian firms breached some existing agreements.
Amazon last year bought a 49 per cent stake in Future Coupons Ltd, which owns a 7.3 per cent stake in Future Retail. In August, Mukesh Ambani's Reliance decided to buy retail, wholesale and some other businesses of the Future Group in a deal valued at $3.38 billion, including debt.
But Amazon's investment came with contractual rights that include a right of first refusal and a non-compete-like pact, and Amazon later started arbitration proceedings in Singapore. Although the arbitration panel had ruled in favour of the Jeff Bezos led retail giant, the temporary injunction was not automatically enforceable in India and the order would have to be ratified by an Indian court.