According to sources, Amazon has written to independent directors of Future Retail Ltd (FRL) confirming that Samara Capital “remains interested and committed” to investing Rs 7,000 crore in the debt-ridden company’s retail assets, and has asked the retail firm to provide existing due diligence reports to Samara by Sunday.
Amazon approached FRL’s independent board on January 19 to reiterate its willingness to aid the Mumbai-based company with its financial issues. In response, Amazon was requested by the independent directors to affirm by January 22 that it will inject Rs 3,500 crore into the cash-strapped retailer in order to repay FRL’s lenders by January 29, 2022.
“We confirm that based on your letter dated January 21, 2022, Samara Capital has once again reiterated to us that they remain interested and committed to lead and take forward the term sheet dated June 30, 2020, signed amongst Samara, FRL and the Promoters of FRL,” Amazon said in its response on January 22.
According to the letter, which PTI obtained a copy of, the term sheet calls for a purchase price of Rs 7,000 crore.
“Pertinently, the Samara Term Sheet provides for an acquisition of all retail assets of FRL, including the “small store formats” comprising the ‘Easy Day’, ‘Adhaar’ and ‘Heritage’ brands, through an Indian owned and controlled entity structure led by Samara and supported by Amazon,” the e-commerce behemoth wrote in the letter.
Amazon stated that the transaction envisioned in the Samara Term Sheet would enable the quickest possible availability of money in FRL by an asset sale and an equity infusion, which would be a direct antidote to FRL’s debt.
Emails submitted to Amazon and the Future Group got no response.
Amazon, in its most recent letter, attested that its commitment won’t influence the limiting idea of the orders passed in the Arbitration Proceedings and by Indian Courts, and said the new exchange will have the arrangement that “the transaction with the Mukesh Dhirubhai Ambani (Reliance Industries Limited) group (MDA Group) will not proceed and not be acted upon; and all assistance would be done through legally compliant structures”.
In December, the Competition Commission of India (CCI) blocked Amazon’s deal to buy a 49 percent stake in Future Coupons Pvt Ltd (FCPL), FRL’s promoter, and slapped a Rs 202 crore penalty on the e-commerce giant.
Amazon has filed a complaint against the CCI order with the National Company Law Appellate Tribunal, which has served notice on the fair trade regulator and the FCPL. The NCLAT has ordered that the case be scheduled for hearing on February 2nd.
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