Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, said on Saturday that it was acquiring the Kishore Biyani-promoted Future Group’s retail, wholesale, logistics, and warehousing businesses on a slump sale basis for Rs 24,713 crore.
When a business is sold for a lump sum consideration without values assigned to individual assets and liabilities, it is called a slump sale. The value of the deal is subject to adjustments set out in the composite scheme of arrangement.
The Future Group will merge certain companies carrying on the aforementioned businesses into the Future Enterprises Limited (FEL), under the scheme, said a report by CNBCTV18.
The report analyses the swap ratio for the merger of the various listed Future Group arms into Future Enterprises. A cursory glance indicates that the deal is positive for all shareholders in all Future Group arms, except the Future Enterprises.
Shareholders of Future Consumer will receive 9 shares of FEL for every 10 they held. This values the Future Consumer at Rs 18, in comparison with its last closing price of Rs 11.5 (57 percent premium).
For every 10 held, the shareholders of Future Lifestyle Fashions will get 116 shares of FEL. This places the value of Future Lifestyle Fashions at Rs 232 compared to its last closing price of Rs 145 (60 percent premium).
Future Retail shareholders will receive 101 shares of FEL, for every 10 held. Compared to its last closing price of Rs 135.20 (49 percent premium), this values the Future Retail at Rs 202. Future Supply Chain shareholders will receive 131 shares of FEL for every 10 held. This values Future Supply Chain at Rs 262 compared to its last closing price of Rs 151 (74 percent premium), the report states.
And lastly, Future Market Network shareholders will receive 18 shares of FEL for every 10 held. This puts the value of Future Market Network at Rs 36 compared to its last closing price of Rs 27 (35 percent premium).
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