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The development comes a day after Future Group’s proposed deal to sell its assets to Reliance Retail was rejected by a majority of lenders to Future Retail
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Reliance Industries in a stock exchange intimation on Saturday said that it cannot implement the $3.4 billion deal with Future Group. The development comes a day after Future Group’s proposed deal to sell its assets to Reliance Retail was rejected by a majority of lenders to Future Retail.
The lenders to Future Group include the State Bank of India, HDFC Bank, Bank of India and Bank of Baroda.
"The Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings," the release said.
Reliance said that as per the results, the shareholders and unsecured creditors of FRL have voted in favour of the scheme but the secured creditors of FRL have voted against the scheme. “In view thereof, the subject scheme of arrangement cannot be implemented,” added Reliance.
In a regulatory filing to the stock exchanges on Friday, FRL said 69 per cent of lenders voted against the plan while 30 per cent supported it. As much as 83 per cent of the secured creditors of Future Lifestyle Fashion, the group’s second largest listed entity, also rejected the proposed sell-off to Reliance.
As per NCLT rules, a scheme must secure at least 75 per cent votes in favour from each of the three groups of shareholders, secured creditors, and unsecured creditors to move forward.