Reliance Retail on Sunday said that it intends to enforce its rights and complete the transaction in terms of the agreement with Future Group after Amazon.com was awarded relief by a Singapore-based arbitration panel against Kishore Biyani-owned group company for its deal with Reliance Retail Ventures Ltd (RRVL).
“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,” the retail wing of India’s richest man Mukesh Ambani’s Reliance Industries Ltd said in a statement.
“RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay,” the statement added.
The statement comes after American e-commerce company Amazon.com was on Sunday granted relief by an arbitration panel against partner Future Group for its deal with Reliance Industries for Rs 24,713 crore, resulting in the Future-RIL deal being put on hold. Amazon had taken the Kishore Biyani-owned group company to arbitration and had accused it of violating the contract. Future Retail had inked the deal with Reliance Retail Ventures Limited for a stake sale in August this year.
Last year, Amazon, had agreed to buy 49 percent of one of Future’s unlisted firms with the right to buy into flagship Future Retail after three years to 10 years. Subsequently, Amazon had taken the Kishore Biyani-owned group company to arbitration after the debt-saddled Future Group signed a deal to sell retail, wholesale, logistics, and warehousing units to Mukesh Ambani’s Reliance Industries.
Passing an interim award in favour of Amazon, VK Rajah instructed Future group to put the deal on hold and added that it cannot proceed until it finally decides the matter, sources with knowledge of the development told moneycontrol. Meanwhile, an Amazon spokesperson confirmed the news and said that the firm expects an expeditious conclusion of the arbitration procedure.
“We welcome the award of the Emergency Arbitrator. We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process,” the Amazon spokesperson was quoted as saying.
Notably, Reliance Industries Ltd had in August announced that its retail arm Reliance Retail Ventures Ltd (RRVL) is acquiring Future Group businesses for Rs 24,713 cr to add to its fast-expanding retail business and bolster e-commerce. “Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore, subject to adjustments as set out in the composite scheme of the arrangement,” the company said in a statement.
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Source: News18