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Future Enterprises to restructure by merging own entities to FEL, Sells Logistics & Warehousing and Retail arms to Reliance Retail

Merging Future Group entities: FEL will issue 9 equity shares to the equity shareholders of FCL for

Merging Future Group entities:

  • FEL will issue 9 equity shares to the equity shareholders of Future Consumer Limited (FCL) for every 10 fully paid up equity share each of FCL.
  • FEL will issue 116 equity shares to the equity shareholders of Future Lifestyle Fashions Limited (FLFL) for every 10 fully paid up equity share each of FLFL.
  • FEL will issue 18 equity shares to the equity shareholders of Future Market Networks Limited (FMNL) for every 10 fully paid up equity share each of FMNL.
  • FEL will issue 101 equity shares to the equity shareholders of Future Retail Limited (FRL) for every 10 fully paid up equity share each of FRL.
  • FEL will issue 131 equity shares to the equity shareholders of Future Supply Chain Solutions Limited (FSCSL) for every 10 fully paid up equity share each of FSCSL.
  • No shares would be issued upon merger of wholly owned subsidiary, Future Bazaar India Limited (FBIL) and its wholly owned subsidiary companies, pursuant to the Scheme, since merging with holding company.

Transfer of Business undertakings to Reliance Retail:

  • Logistics & Warehousing Undertaking would be transferred to and vested in Reliance Retail Ventures Limited as a going concern on slump sale basis for a consideration of Rs. 25.22 crore.
  • Retail & Wholesale Undertaking would be transferred to and vested in Reliance Retail and Fashion Lifestyle Limited, a wholly owned subsidiary of RRVL, as a going concern on a slump sale basis for a consideration of Rs. 5,628.33 crore.
  • Total lumpsum aggregate consideration of INR 24,713 crore

Future Enterprises also approves preferential allotment of equity shares and warrants to Reliance Retail. Future Enterprises will issue a total of 158.63 lakhs equity shares/warrants for an average price of INR 16.65 crores aggregating to a total of INR 2,800 crores.

  • INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and
  • INR 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in RRFLL acquiring further 7.05% of FEL.
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