Shareholders of Future Group entities are meeting to seek approval for the 24,713 crore deal with Reliance Retail. This is a deal where it is going to sell its retail, wholesale and logistics assets by way of a slump sale.
The meeting is currently underway with shareholders and is expected to end by about 3:00 PM. The meeting with lenders will be held on Thursday.
Amazon had strongly objected to this meeting being convened and wrote to Kishore Biyani objecting to it. However, Future had reiterated at the time that this is a court convened meeting, this is convened by NCLT.
What is the importance of the shareholder meeting?
It is the last regulatory checkbox with respect to getting all regulatory approvals in place. But there are still several hurdles that remain for the deal right now. The main one is that arbitration proceedings in Singapore initiated by Amazon are still underway and then that has not come to an end.
Bank of India had recently moved NCLT to initiate insolvency proceedings against Future Retail over non-payment of dues. Also, the lenders have objected and have sought some accountability from Future Retail over the store takeovers by Reliance.
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Also Read: Bank of India moves NCLT against Future Retail, files insolvency plea