Future Consumer Enterprise Ltd (FCEL) has received the CCI approval to issue compulsorily convertible debentures (CCDs) and equity shares worth over Rs 300 crore to Black River.
Both the entities had entered into a pact for the transaction in January.
Kishore Biyani-led group firm FCEL is engaged in the business of sourcing and branding of fast moving consumer goods, food and grocery products.
Black River 2 is a wholly-owned subsidiary of Black River Food 2 LP which specializes in investments in food industry and agri business value chain with focus on emerging markets.
Competition Commission of India (CCI) has cleared the transaction, according to the regulator’s website.
The watchdog keeps a tab on unfair business practices in the market place across sectors.
In a filing to BSE in January, FCEL had said it has entered into an investment agreement with Black River Food 2 Pte for the proposed issue of compulsorily convertible debentures (CCDs) and equity shares.
“Black River has agreed to subscribe to CCDs and equity shares proposed to be issued by the company for an aggregate amount of Rs 301.50 crore (USD 45 million),” it had said.
According to FCEL, the move is aimed at financing expansion and business initiatives and to help improve costs and the maturity profile of existing debt.
Post the deal, Black River will have the right to nominate one director on the company’s board.