Future in talks with Premji, Jhunjhunwala
MUMBAI: Kishore Biyani and his family, the promoters of the debt-laden Future Group, are in talks with Mukesh Ambani-led Reliance Industries Ltd (RIL) to sell the group’s supply chain and logistics businesses, two people aware of the matter said.
The Biyani family is also in separate talks with at least three large investors, including Azim Premji’s Premji Invest and billionaire investor Rakesh Jhunjhunwala to sell Future Lifestyle Fashions, the people said on condition of anonymity.
Amazon had put up a stiff legal challenge to Future Retail’s ₹24,713 crore asset sale to RIL in 2020 since its 49% ownership of Future Coupons Pvt. Ltd, a promoter of FRL, entitled it to veto the asset sale to specified entities, including RIL. However, Future Coupons is not a promoter of Biyani’s logistics, warehousing and lifestyle businesses, and Biyani is free to sell these businesses to any buyer.
“RIL has expressed interest in acquiring the entire warehouse and logistics business of Future Group in a fresh deal,” one of the two people cited above said on condition of anonymity.
Future Group’s logistics and warehousing businesses are primarily housed under two subsidiaries—future Supply Chain
Solutions Ltd and Future Market Networks Ltd. Both could be sold to RIL, the first person said, adding that since RIL has taken control of 900-odd Big Bazaar stores, the acquisition of Future’s logistics and warehousing businesses will help RIL reopen stores and also fulfil supply chain requirements of RIL’S own stores.
Future Supply Chain Solutions has 58 distribution centres with a total warehouse space of 6.75 million sq. ft. Ritvika Trading Pvt. Ltd, along with family members of Biyani, hold 22.62% as promoters in Future Supply chain Solutions. In Future Market Networks, 71.57% stake is held by promoters, of which Future Corporate Resources Pvt. Ltd owns 71.47%.
Future Group, which owes around ₹25,000 crore to creditors is also in talks to sell its lifestyle fashions business to Premji Invest, Jhunjhunwala, and another unnamed investor.
“According to the ongoing deal discussions, while at least three entities, including private equity and high net worth individuals, are looking to buy the entire promoter holding from Biyani in Future Lifestyle and his family members and associate promoter group firms of Future Lifestyle, some of the lenders to Future Group may also acquire an equity stake in Future Lifestyle in lieu of part of their dues,” the person cited above said.
Out of Future Lifestyle Fashions’ total 20.39% promoter holding, Ryka Commercial Ventures holds 18.39%, RSCL Trading has 1.89%, and the rest is held by Biyani family members.
A similar asset sale deal is being explored by Future Group’s promoters for Future Consumer Ltd. The valuation for these deals is yet to be agreed upon. If all goes well, the sale of these businesses may be completed within six months, the person cited above said.
Emails sent to a spokesperson for Future Group and its promoters did not elicit any response. Emails sent to Premji Invest, Rakesh Jhunjhunwala and RIL too remained unanswered.