Reliance calls off deal with Future after secured creditors reject it

Reliance Industries on Saturday told BSE its agreement to buy Future Retail cannot be implemented after lenders to the retail company rejected the deal.

Majority shareholders and unsecured creditors of Future Retail, Future Lifestyle Fashions, and other group firms have voted in favour of the scheme of amalgamation with Reliance Retail, the company said on Friday.

However, a majority of the secured creditors of four out of the five Future companies (for which voting results are announced) voted against the resolution required to pass Future Group’s Rs 25,000-crore scheme to sell most of its retail and logistics businesses to Reliance Group.

In Future Lifestyle Fashions, 81.91 per cent of the shareholders voted in favour of the scheme of amalgamation, and so did 93.93 per cent of the unsecured creditors.

“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. As per these 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. This is for your records,” said Reliance in an exchange filing on Saturday.

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