Reliance Retail Ventures, the retail company of Reliance Group, has extended the deadline for the second time to complete its Rs 24,713 crore deal with Futures Group. The company will now complete it by 31 March 2022. Reliance is awaiting regulatory and court approval for the deal. Reliance Retail Ventures Limited (RRVL) said in a regulatory filing that it has extended the deadline for dealing with Future Group from 30 September 2021 to 31 March 2022. Reliance Retail and Fashion Life, a wholly owned subsidiary of Reliance Retail Ventures Ltd. Style Ltd. Both have approved it.
Future Group had also given information about increasing the deadline earlier.
Future Retail had earlier said in a regulatory filing that Reliance Retail Ventures Limited has extended the long stop date for this deal from March 31, 2021 to September 30, 2021. Long Stop Date is a popular method of dealing with mergers and acquisitions. It is a time frame in which it is decided to fulfill the pre-determined conditions for a transaction. It is agreed by both the parties to complete the deal.
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Amazon challenged the decision in NCLT
Last week, the National Company Law Board (NCLT) had asked the Future Group company to convene a meeting of its shareholders and lenders to seek approval from them on the decision to sell its assets to Reliance Ventures. Amazon had applied opposing it but NCLT rejected it.
Amazon had said that the matter against Future in the deal with Reliance is under arbitration, so such a decision cannot be given. In August last year, Reliance Retail Ventures Ltd had said it would buy Future’s retail, wholesale, logistics and warehousing business for Rs 24,713 crore. But Amazon opposed it saying it is an investor in Future Retail Limited.
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