Shares of Kishore Biyani-led Future Retail rose as much as 10 per cent to hit an intraday high of Rs 80.50 a day after Delhi High Court overturned its previous order that had stalled Future Group’s Rs 24,713 crore deal to sell its retail assets to Reliance Retail, in a setback for Future’s partner Amazon.com Inc, which had challenged the sale. The court’s decision is the latest twist in the Future Group saga, coming after the court last week sided with Future’s partner Amazon.com Inc’s challenge and put Future’s asset sale to Reliance Industries on hold, which led to an appeal from the retail group. (Track Future Retail share price here)
The two judge bench of Delhi High Court agreed that Future’s retail unit was not a party to the arbitration agreement invoked by Amazon, Future said, welcoming the order in a filing to stock exchanges.
In a fight between two of the world’s richest men – Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani – the US giant has argued that Future breached certain 2019 contracts by agreeing to the deal with Reliance. Future has denied any wrongdoing.
Amazon has argued in the courts that an October decision by an arbitrator who had put the Reliance deal on hold is enforceable. Future has maintained that its retail unit was not party to the arbitration agreement and the order was not binding on the company.
Future Group, the country’s second largest retailer with over 1,700 stores, had agreed to sell its retail businesses to market leader Reliance last year.
As of 10:49 am, Future Retail shares traded 8.33 per cent higher at Rs 79.30, outperforming the Sensex which was up 0.54 per cent.