Future can seek nod for Reliance deal

According to reports, the bench also dismissed the application filed by Amazon opposing the scheme of merger of the Future group companies.
Reliance Industries Limited (File Photo | Reuters)
Reliance Industries Limited (File Photo | Reuters)

NEW DELHI: Amid the on-going legal dispute between e-commerce giant Amazon and Mukesh Ambani-led Reliance (RIL), the Mumbai bench of National Company Law Tribunal (NCLT) on Tuesday allowed Kishore Biyani-led Future Group firms to hold meetings of its shareholders and creditors to seek approval for the sale of assets to Reliance Retail Ltd. Owing to this development, Future Retail’s scrip on the BSE closed 9.98% higher at Rs 51.80 on Tuesday.

According to reports, the bench also dismissed the application filed by Amazon opposing the scheme of merger of the Future group companies. Amazon had filed an application objecting to NCLT considering the scheme pending completion of its arbitration proceedings against Future Retail.

The NCLT dismissed Amazon’s application on the ground that it was premature, said sources. “Given the approval given but SEBI was conditional to ongoing litigation and their outcomes, the current order of NCLT is open to challenge. The proceedings/deal itself cannot be consummated,” an official from Amazon said on the condition of anonymity.

According to the sources, no prejudice is caused in conducting shareholders and creditors meetings for considering the scheme since it will be open to Amazon for raising objections when the scheme is filed for the NCLT’s final approval after the shareholders and creditors give the go-ahead.

The NCLT also said that the Supreme Court had only restrained it from pronouncing the final order approving the scheme. Meanwhile, the near-bankrupt Future Group can now obtain all preparatory approvals from shareholders and creditors for its stake sales deal with reliance.

Amazon’s plea against Future firms’ merger rejected
Future Group firms to hold meetings of  its shareholders and creditors to seek approval for the sale of assets to Reliance Retail. The NCLT dismissed Amazon’s plea opposing merger of the Future group firms

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