1/5/2021 Kishore Biyani: Amazon was fully aware of talks with RIL for sale of retail assets: Future

ets: Future Group CEO Kishore Biyani - The Economic Times

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Business News › Industry › Services › Retail › Amazon was fully aware of talks with RIL for sale of retail assets: Future Group CEO Kishore Biyani

Amazon was fully aware of talks with RIL for sale

of retail assets: Future Group CEO Kishore Biyani
PTI Last Updated: Jan 05, 2021, 04:18 PM IST
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Synopsis
Opening up after being locked in an intense legal battle with Amazon over the Rs 24,713
crore deal with Reliance, Biyani in an interview with PTI said the US giant's 2019
investment in Future Coupons Pvt Ltd (FCPL) -- Future Retail's parent -- was for coupon
and gifting business only and the same could continue post-retail assets going to
Reliance.

Agencies
Future Group Founder and CEO
Kishore Biyani on Tuesday said
Amazon was fully aware of his group's
talks with Reliance Industries
NSE -1.24 % for the sale of retail assets
that followed the US giant o ering no
concrete help to tide over the cash
Biyani also hinted that post completion of the
crisis.
deal, an exit route may be offered to Amazon.

Opening up after being locked in an

intense legal battle with Amazon over the Rs 24,713 crore deal with Reliance,
Biyani in an interview with PTI said the US giant's 2019 investment in Future
Coupons Pvt Ltd (FCPL) -- Future Retail's parent -- was for coupon and gifting
business only and the same could continue post-retail assets going to
Reliance.

He hoped to complete the deal with Reliance within two months of Sebi
approval.

While the arbitration would commence later in January over the plea led by
Amazon contesting the deal with Reliance Industries Ltd (RIL), Biyani said
both the deal and arbitration process would continue in "parallel" as the deal

https://economictimes.indiatimes.com/industry/services/retail/amazon-was-fully-aware-of-talks-with-ril-for-sale-of-retail-assets-future-group-ceo-kishore… 1/5
1/5/2021 Kishore Biyani: Amazon was fully aware of talks with RIL for sale of retail assets: Future Group CEO Kishore Biyani - The Economic Times

with billionaire Mukesh Ambani-led group is not related with the e-commerce
major's stake in one of the group rms, Future Coupons.Â

Biyani said Future Group had approached them several times after its retail
business was massively hit after the lockdown and its debt level zoomed.Â

"The day COVID and lockdown started, since then we were in continuous
engagement with Amazon. That's not the case that they (Amazon) were not
aware of. We had written to them somewhere in March also about the price
deterioration and invocation of shares," Biyani told PTI.

There was a clause through which Amazon could replace lenders with some
others which can help them (Future) to retain the ownership of the shares if it
falls, he added.

"COVID had happened and things did not materialise then. After that, we
were in discussion with them (Amazon) through the whole transaction. Even
when Reliance was part of the negotiation, they were always aware of that," he
added. Â Asked as to how many times Future Group approached Amazon, he
said, "we were in continuous dialogue. We had approached them multiple
times. We had calls and meetings".

Biyani said Amazon was also apprised when there were exclusive talks with
RIL.Â

"After the matter has become legal (sub-judice), we have not spoken,"he said.

While noting that Amazon's response was always "let's nd a solution", Biyani
said they never got any solution from Amazon except "lots of paper works".

"To be honest, we never got a concrete solution," Biyani said, adding, "we
approached RIL only after things were not moving. You cannot work with one
option at a time".

However, Amazon has contended this version.

"It is incorrect to say that Amazon did not o er help to Future Retail Limited
as there were ongoing discussions on multiple options with partners on the
one hand and with the promoters of Future on the other, including a signed
Term Sheet," an Amazon spokesperson said.

Amazon had dragged Future Group to arbitration at Singapore International

Arbitration Centre (SIAC), which on October 25 passed an interim award in

https://economictimes.indiatimes.com/industry/services/retail/amazon-was-fully-aware-of-talks-with-ril-for-sale-of-retail-assets-future-group-ceo-kishore… 2/5
1/5/2021 Kishore Biyani: Amazon was fully aware of talks with RIL for sale of retail assets: Future Group CEO Kishore Biyani - The Economic Times

favour of the e-commerce giant.

Future Retail has questioned the move and said the order was "not binding"
and had even approached Delhi High Court, which last month upheld
Amazon's right to make representations to statutory authorities against the
Future Group-Reliance Retail deal. The court also gave a go-ahead to the
regulatory authorities to decide about the deal in accordance with the rules
and regulations.

Future Group has approached Sebi to expedite the review of the proposed deal
and issue a no-objection certi cate while Amazon has urged that the review of
the "impugned transaction" be suspended.

"We are responding to what they (Amazon) are writing. We are not the rst
writers," Biyani said when asked about the ongoing war of letters between
Amazon and Future.

"We had applied for CCI permission, which we have got. We have applied to
BSE and NSE, which is linked to Sebi's approval," he said.

Biyani does not expect any hurdle after the order of the Delhi High Court
which has directed the regulators to take an independent call on the issue.

"I do not see (it taking) much time. Once we get Sebi approval, then we have to
go NCLT for creditors, lenders and shareholders' approval," he said adding that
after Sebi approval, it would take 45 to 60 days. Â The process of appointing an
arbitrator at SIAC has not been done yet and Biyani said the deal with RIL has
nothing to do with Amazon.

He hinted that the arbitration and the process of completion of the Rs 24,713
crore-deal with Reliance Retail Ventures Ltd (RRVL), subsidiary of RIL would
continue in parallel.

"It is a dispute between the promoters and Amazon in a way because they are
part of a company (Future Coupons), which we built for gifting and loyalty
business. That company has invested in FRL and they are not directly the
owners of FRL," he said.Â

Biyani also emphasised that the partnership with Amazon was for coupon and
gifting business only and to work with Future brands and portfolios and to sell
it on Amazon. "That continues today also," he added.

On being asked as what would be left for Future Coupon to do after the assets

https://economictimes.indiatimes.com/industry/services/retail/amazon-was-fully-aware-of-talks-with-ril-for-sale-of-retail-assets-future-group-ceo-kishore… 3/5
1/5/2021 Kishore Biyani: Amazon was fully aware of talks with RIL for sale of retail assets: Future Group CEO Kishore Biyani - The Economic Times

of the group are transferred to RIL, Biyani said, "it can still continue to hold
the shares of the resultant entity. It will continue to do the gifting business".

Biyani also hinted that post completion of the deal, an exit route may be
o ered to Amazon.

"The best solution is conciliation on every issue," he said, adding, "we would
love to nd a solution". In 2019, Amazon agreed to purchase 49 per cent stake
in Future Coupons with the right to buy into agship Future Retail after three
to ten years. Future Coupons holds 7.3 per cent equity through convertible
warrants in Future Retail, that operates popular supermarket and
hypermarket chains such as Big Bazaar.

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1/5/2021 Kishore Biyani: Amazon was fully aware of talks with RIL for sale of retail assets: Future Group CEO Kishore Biyani - The Economic Times

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