India's Future Group shares soar after court lifts hold on Reliance deal

Future Lifestyle Fashions

09/02/2021 04:39

BENGALURU, Feb 9 (Reuters) - Shares in Future Group
companies jumped nearly 10% on Tuesday, a day after an Indian
court overturned an order that had stalled Future Group's $3.4
billion deal to sell its retail assets to conglomerate Reliance
Industries Ltd  RELI.NS .
    The court's decision is the latest twist in the Future Group
saga, coming after a New Delhi court last week sided with
Future's partner Amazon.com Inc's  AMZN.O  challenge and put
Future's asset sale to Reliance Industries on hold, which led to
an appeal from the Indian retail group.  urn:newsml:reuters.com:*:nL4N2K8315
    A two-judge bench hearing Future's appeal on Monday put on
hold the New Delhi court's previous ruling, two sources familiar
with the proceedings said.  urn:newsml:reuters.com:*:nL1N2KE131
    E-commerce giant Amazon has argued that Future breached
certain 2019 contracts by agreeing to the deal with Reliance.
The bench agreed that Future Retail  FRTL.NS  was not a part of
the 2019 agreement, the company said in a filing https://bit.ly/3tFlVj7
 to the stock exchanges late on Monday.
    Shares of Future Retail rose nearly 10% to 80.50 rupees in
early trade, while Future Consumer  FTRE.NS , Future Enterprises
 FURE.NS  and Future Lifestyle Fashions  FLFL.NS  gained between
8.2% and 9.9%.
    Future Retail is also set to report results for the quarter
ended Dec. 31 later in the day.   
    
             
       

 (Reporting by Anuron Kumar Mitra in Bengaluru; Editing by
Rashmi Aich)
 ((AnuronKumar.Mitra@thomsonreuters.com; +91 99863 58469;))