Amazon faces blow as Delhi HC lifts hold on Kishore Biyani's Group - Reliance deal; Future stocks rise 5-10%

In the latest verdict, the Delhi HC gave green signal to Future Group to go ahead with the scheme of arrangement with Mukesh Ambani's RIL in the latest verdict. This comes as a blow to Amazon who has challenged the deal.

Feb 09, 2021 01:02 IST India Infoline News Service

Future Group stocks shined on Tuesday after the Delhi High Court reversed its previous order which had halted the deal with Reliance Industries (RIL) retail arm, and gave a green signal to go ahead with the scheme of arrangement with Mukesh Ambani's RIL in the latest verdict. This comes as a blow to Amazon who has challenged the deal.

At around 1.38 pm, Future Retail was trading at the upper circuit of Rs80.50 per piece up 10% on Sensex. Future Enterprises, Future Consumer and Future Lifestyle Fashions also climbed by 10% each and were trading at Rs11.78 per piece, Rs8.65 per piece and Rs91.20 per piece respectively.

Meanwhile, Future Supply Chain Solutions and Future Market Networks advanced by 5% each and were trading at the upper price band of Rs99.05 per piece and Rs19.15 per piece respectively.

Future Retail (FRL) in its regulatory filing on Monday said, "The Company is pleased to update the stock exchanges that today a Division Bench comprising of the Hon’ble Chief Justice D. N. Patel and Hon’ble Justice Jyoti Singh has stayed the operation and effect of order passed by the Ld. Single Judge, inter alia, for the prima facie reason that the Company is not a party to the Shareholders Agreement dated August 22 2019 executed between Amazon, Future Coupons Private Limited and the Promoters of FRL, under which arbitration was initiated by Amazon in Singapore. The Hon’ble Court also observed that statutory authorities cannot be restrained in private litigation from acting in accordance with law."

Amazon had filed a petition before Delhi HC last month, where the e-commerce giant alleged of a deliberate and wilful breach and violation” of the SIAC emergency arbitrator’s award by Kishore Biyani-led Future Group.

On February 02, an ad interim status quo passed by a Ld. Single Judge in proceedings filed by Amazon.Com NV Investment Holdings LLC (“Amazon”) asking for a stay on the proposed transaction with the Reliance Group.

The Mukesh Ambani-backed RIL signed the merger deal worth Rs24,713cr with Kishore Biyani-backed Group's retail and logistic subsidiaries through Reliance Retail Ventures in August 2020.

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