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The Board of Future Retail Ltd (FRL) on Saturday 'in-principle' agreed and approved acquisition of the retail infrastructure assets up to maximum limit of Rs. 4,000 crore of Future Enterprises Ltd (FEL) in one or more tranches.
In a stock exchange filing, FRL said the acquisition will be done through direct purchase or acquisition through slump sale or any other mode as mutually acceptable at fair value to be determined based on independent valuation report and backed by fairness opinion.
The Board also agreed that "the above acquisition shall be done from the equity funds being raised, equity upside share and existing credit facilities available with the company and at present not exploring raising of fresh funds through equity/debt securities/instrument."
FRL said approval of members of the company will be sought at the Extraordinary General Meeting proposed to be held on November 8, 2019 at Mumbai.
FRL operates large format retail chains -- Big Bazaar, fbb, Foodhall; small format stores -- EasyDay and Heritage Fresh; and convenience stores -- WH Smith and 7-Eleven.
FEL develops, owns and leases the retail infrastructure for the Future Group. The company also holds the Group’s investments in subsidiaries and joint ventures including insurance, textile manufacturing, supply chain and logistics.
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