The company had failed to clear its debts, after which Future Retail had to resort to insolvency. After which Reliance Industries offered to acquire the company for Rs 24,713 crore.
Image Credit source: Representational Image
Mukesh Ambani and Gautam Adani will once again be face to face to buy Kishore Biyani’s Future Retail, but before that both will have to leave behind 47 more companies. Yes, for the second time Expressions of Interest have appeared for Future Retail, their number is 49. Apart from Reliance Retail and Adani, WH Smith, Gordon Brothers’ International Consortium JC Flowers, people are included in this list.
Apart from this, other people who have given EOI include group of scrap dealer firms and some individual investors like Harshavardhan Reddy. No statement has come from Reliance Retail and WH Smith in this matter. Jindal Power has refused to give any statement. Apart from Gordon Brothers, no information could be received from Jesse Flowers and Harshavardhan Reddy.
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Deal with Reliance failed
Future Retail has a debt of about Rs 21,000 crore. The company owns big and small stores under the Big Bazaar brand. The company also has a 100 per cent subsidiary that operates around 100 stores under the WH Smith brand. The company also has stores under the Foodhall brand. The company had failed to clear its debts, after which Future Retail had to resort to insolvency. After which Reliance Industries offered to acquire the company for Rs 24,713 crore, but the deal later failed.
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Lenders can benefit
The new set of EOI for Future Retail has been received on 7th April. If experts are to be believed, a banker said that he is hopeful that if there is some competition in the bidding process, the lenders may get their value. Also, the chances of recovery of the dues of the lenders can improve.