Reliance Industries Ltd (RIL) share price fell over 2 per cent to Rs 2,067 apiece on BSE after an emergency arbitrator in Singapore ruled in favour of Amazon, putting the RIL-Future deal on hold. However, shortly after the Singapore Arbitrator’s ruling, Mukesh Ambani-led firm said it will complete the transaction without any delay. On the other hand, Kishore Biyani’s Future Retail Ltd share price plunged 9.3 per cent to Rs 70.55 apiece.
Early Monday morning, Future Retail gave a clarification on the news related to the Singapore order in favour of Amazon in the matter of Future-RIL deal. It said that the company has received a communication from the Singapore International Arbitration Centre (SIAC), enclosing an interim order of the Emergency Arbitrator in the arbitration proceedings under shareholders’ agreement between Amazon, Future Coupons Private Limited and the promoter group. “FRL is examining the communication and the order,” it said in a press release.
Future Retail further said that FRL has been legally advised that actions taken by the FRL or its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party. “As per the advice received by FRL, all relevant agreements are governed by Indian Law and provisions of Indian Arbitration Act for all intents and purposes and this matter raises several fundamental jurisdictional issues which go to the root of the matter,” Future Retail said in its press release.
On October 16, following a hearing of the arbitration at the SIAC, the Jeff Bezos-led company had slapped a legal notice on Future Group, alleging that the retailer’s Rs 24,713 crore asset sale to RIL violated an agreement with the e-commerce giant.
Reliance Industries Ltd on Sunday said that RRVL (Reliance Retail Ventures Ltd) was informed of an interim order passed by the Emergency Arbitrator in the arbitration proceedings invoked by Amazon under a shareholders’ agreement with the promoters of Future group. However, Mukesh Ambani’s firm also emphasised that Reliance Retail Ventures Ltd has entered into the transaction for acquisition of assets and business of Future Retail Limited under proper legal advice, and the rights and obligations are fully enforceable under Indian Law.
Future Retail also mentioned that in any enforcement proceedings, the company would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay.
RIL has been on a fundraising spree for its retail business and since September 2020, it has secured an investment of Rs 37,710 crore by selling 8.48 per cent stake in its retail arm. The firm has on-boarded over half a dozen global companies including Silver Lake, KKR, General Atlantic, Abu Dhabi sovereign wealth fund Mubadala Investment Co, GIC, TPG and ADIA.