January 21, 2021 3:50:24 am
THE Securities and Exchange Board of India (Sebi) has given its approval for the takeover deal between Kishore Biyani’s Future Group and Reliance Retail, part of Reliance Industries Limited (RIL).
Amazon had written to the Sebi, asking the regulator to stop the deal, saying the Future group had violated certain agreement with the US firm. Future had entered into a Rs 24,713 crore agreement with Reliance Retail in August 2020. As part of the deal, the Future group was to sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail.
In its letter of approval, Sebi listed a number of conditions in accordance to the Composite Scheme of Arrangement. The regulatory body has also referred to the apprehensions raised by Amazon.
The company should ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme, Sebi said.
It should ensure that proceedings pending before the Sebi against the entities part of the promoter/ promoter group or are directors of the companies involved in the scheme, should be highlighted in the scheme document filed before National Company Law Tribunal (NCLT), Sebi said.
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