Facing major hurdles in approval of a deal with Reliance Industries Ltd, Future Retail Ltd has requested the market regular Securities and Exchange Board of India (SEBI) to approve it citing a Delhi high court ruling. The Delhi HC recently said the Kishore-Biyani-led Future Group's deal to merge listed companies with Reliance Industries is "valid". In view of this, Future wrote a letter to Sebi, saying delay in approval of the proposed deal will lead to financial loss to stakeholders of Future Retail.
"Any further delay on this count would cause irreparable loss not only to FRL and its stakeholders including lakhs of small investors but also to other entities and their respective stakeholders & investors, who are involved in the scheme," Future Retail's letter said, The Economic Times reported.
Amazon in October wrote to the markets regulator, stock exchanges and competition commission, urging them to take into consideration the Singapore arbitrator's interim judgement on October 25, which barred FRL from taking any step to dispose of or encumber its assets, or issue securities, to secure any funding from a restricted party.
Future Retail then filed an urgent caveat petition before the Delhi High Court. In its plea, the Kishore Biyani-led company requested to be heard in anticipation that Amazon may move Indian courts to enforce the interim arbitration award in its favour.
The Delhi HC this month rejected Future Retail's plea for an interim injunction restricting Amazon from approaching statutory authorities, SEBI, Competition Commission, and other regulators, about the arbitral order against its asset sale to RIL.
In August 2019, Amazon bought a 49 per cent stake in one of Future Group's unlisted companies - Future Coupons Ltd (FCL) - along with the right to acquire the listed flagship FRL after a few years, if the Centre were to revoke its ban on foreign ownership of multi-brand retailers. Future Retail ran into a severe cash crunch after the nationwide lockdown imposed to curb the coronavirus outbreak. To stay afloat, it cut a deal with RIL to sell assets for Rs 24,713 crore.
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