Two of Asia’s richest billionaires --- Gautam Adani, the chairman of Adani Group, and Mukesh Ambani, the owner of Reliance Industries, are in the race to acquire debt-laden Future Retail Ltd (FRL). This is probably one of the first times when the two billionaires are competing against each other over an acquisition.
Reliance Retail Ventures Ltd (RRVL) and April Moon Retail Private Ltd, a joint venture between Adani Airport holdings and Flemingo Group, are among 13 firms that have submitted expressions of interest (EOIs) for Future Retail.
Other entities that have submitted EOIs include - Bommidala Enterprises Private Limited, Capri Global Holdings Private Limited, Consortium between B-Right Real Estate Limited and Ayekart Fintech Private Limited, Dharampal Satyapal Limited, Dickey Alternative Investment Trust (DAIT), Nalwa Steel and Power Limited, Payard Investments Private Limited, Shalimar Corp Limited, SNVK Hospitality and Management Private Limited, United Biotech Private Limited and WH Smith Travel Limited.
The final list of entities who have shown interest will be issued on November 20.
Following which, they will be asked to submit a resolution plan by December 15.
This implies that Future Retail, which once was among the country’s biggest retailers, will find a new owner in 2023.
FRL was dragged into bankruptcy proceedings by its lenders after it defaulted on loans.
As of September 2, 2022, the resolution professional (RP) has received claims of Rs 21,432.82 crore from financial creditors, which mainly include banks and financial institutions.
FRL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
The insolvency proceedings came after Reliance terminated its Rs 24,713-crore deal with the Future Group due to legal issues and other reasons.
As per the EOI invitation document, FRL currently has access to 302 leased retail stores spread across 23 states and Union territories, consisting of 30 large format stores such as Big Bazaar and FBB stores and 272 small format stores.