InvestorQ : Has Reliance managed to finalize its plans to acquire Future Group?
vaishnavi mhatre made post

Has Reliance managed to finalize its plans to acquire Future Group?

Answer
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Arusha Ray answered.
1 month ago


The mega deal by RIL to acquire Future Group was held up due to the personal debt of the promoter to the tune of Rs.2000 crore. Apparently, a deal with lenders having a pledge will convert part of Biyani’s loans into equity and receive shares in Reliance Retail Ltd.

The overall deal is worth 27,000 crore or $3.60 billion. This deal also encompasses the logistics and apparel businesses of the Future group. Kishor Biyani is under pressure to sign on the dotted line after Future Retail recently defaulted on interest payments of Rs.100 crore leading to a rating warning by S&P.

Future would not want to get into Default Ratings as it would impair its future capacity. Weak liquidity is already an overarching credit risk the Future group. The promoters had debt worth Rs 12,000 crore on their books and have been consistently defaulting on financial commitments