Amazon adds Future Retail to its cart
On Thursday, Future Retail informed the bourses that its promoter group and promoter entity Future Coupons Limited have entered into an agreement with Amazon’s investment arm Amazon.com NV Investment Holdings LLC for share subscription.
As part of the agreement, Amazon has decided to make an equity investment in Future Coupons Limited for acquiring a 49 per cent stake, which consists of both voting and non-voting shares.
Further, the agreement mentions that Amazon has been granted a call option which allows it to acquire all or part of the promoters' shareholding in Future Retail Ltd, and is exercisable between the 3rd to 10th years, in certain circumstances, subject to applicable law.
Additionally, the company, in its exchange filing, said that the promoters have also agreed to certain share transfer restrictions on their shares in the company for same tenure, including restrictions to not transfer shares to specified persons, a right of first offer in favour of Amazon. However, the financial detail of this transaction was not revealed.
Meanwhile, on Friday, the stock of Future Retail was trading in negative terrain. At 12.07 hours the stock was trading at Rs. 390.5 apiece, down by 5.5 per cent from its previous close. The stock had opened at Rs. 420 but later it dipped to intraday low of Rs. 380.60 on the BSE.