Future Group Shares Plunge as Lenders Reject RIL’s Takeover Offer

Share Us

153
Future Group Shares Plunge as Lenders Reject RIL’s Takeover Offer
23 Apr 2022
min read

Podcast

News Synopsis

Shares of Kishore Biyani's Future Group fell by more than 12% in early Friday trading after a troubled company lender rejected Reliance Retail's proposed acquisition offer. In response to this news, the stock price of Future Lifestyle Fashions fell by 12.3%, hitting a daytime low of Rs 36 at BSE. Future Enterprises, on the other hand, fell 6.1% to Rs 6.15 per share.

According to sources, with a big blow to Future Group, major lenders of debt companies rejected Reliance Retail's proposed acquisition scheme. After Reliance reduced the transaction value, the lender declined the offer to sell Future Group's retail, wholesale, and logistics assets to Reliance Retail Ventures after Reliance lowered its deal value.

The decision was made on Thursday, February 28, 2022, at a meeting of unsecured creditors of Future Retail Limited, in accordance with the instructions of the Mumbai Bank's National Corporate Court.

The two-day Shareholders and Creditors Meeting was held in April 2021 after the Supreme Court allowed Future Group companies to convene a meeting seeking approval for a Rs 24,713 crore transaction with Reliance Retail Ventures.

TWN In-Focus