The deal that was in the works between the downtrodden Future Group and Reliance industries will not come to fruition after the creditors and other stake holders voted against it. If the vote did go through, it would have allowed for the top brass to completely refurbish who would have then worked together to make the merger deal with Mukesh Ambani’s Reliance happen.
According to government law, a decision like this will need a three fourths majority of secured creditors, unsecured ones and even all the stake holders for it to go through.
None of the three subsidiaries were able to hit the minimum target for the mega transaction to take place. Here is the breakdown of votes for all three subsidiaries:
Future Retail
Out of all the secured creditors, only 30.71% voted yes for the deal, while the rest voted against it. Out of the other creditors, 78.22% voted in favour for it while only a minority voted for it not to go on. Among the stake holders, 86% voted in favour while just 14% voted against it.
For secured creditors, 30.71% who voted for have outstanding loans worth Rs. 3040 crores while the rest amount to Rs 6860 crores. Between the other creditors, Rs. 4117 was the total amount of outstanding between the ones who voted for while the rest amount to Rs. 1146 crores.
Future Lifestyle Fashion
Out of all the secured creditors, only 17.25% voted yes for the deal, while the rest voted against it. Out of the other creditors, 93.93% voted in favour for it while only a minority voted for it not to go on. Among the stake holders, 82% voted in favour while just 18% voted against it.
For secured creditors, 17.25% who voted for have outstanding loans worth only Rs. 287 crores while the rest amount to Rs 1378 crores. Between the other creditors, Rs. 1293 was the total amount of outstanding between the ones who voted for while the rest amount to Rs. 83 crores.
Future Enterprises
Out of all the secured creditors, only 0.03% voted yes for the deal, while the rest voted against it. Out of the other creditors, 66.66% voted in favour for it while the remaining of them voted for it not to go on. Among the stake holders everyone of them voted for the deal to take place. It was a unanimous decision from them.
For secured creditors, 0.03% who voted for have outstanding loans worth just a single crore while the rest amount to Rs 4292 crores. Between the other creditors, Rs. 449 crores was the total amount of outstanding between the ones who voted for while the rest amount to Rs. 268 crores.
The rest of the subsidiaries’ results have not come out yet, but these three are the biggest ones that take up the biggest chunk of the parent company so it is inevitable that the feal won’t go through now.
Future Group are currently going through some troubled times only time will tell as we see if they can navigate themselves out of these treacherous waters.