Another bet slips off Amazon, PremjiInvest takes 6% Stake In Future Retail
The year 2018 has been quite famous with a number of deals and acquisitions taking place in the Indian business market!
Speaking about the much hyped Flipkart-Walmart deal, that took place recently had everyone glued to the news. With regard to the Flipkart-Walmart deal, the e commerce giant Amazon Inc., lost its bet on Flipkart to the US retail behemoth Walmart. The Indian business market recently noticed an interesting investment between two firms!
The famously known Czar of the Indian IT, Azim Premji’s firm PremjiInvest, bought 6 % stake in Kishore Biyani’s Future Retail Ltd., for a whopping $ 251 million! The acquisition happened in a bulk deal! PremjiInvest, bought the stake in a bulk deal from Cedar Support Services Ltd., a subsidiary of Bharti Ventures Ltd., It purchased the stake from Bharti Group, which owns a 9 % stake in Future Retail.
Kishore Biyani, the Founder and CEO of Future Group, said in an interview,
PremjiInvest is one of the larger investors in the consumer space in India. They are also investors with us in Future Lifestyle Fashion (4% stake.)
The value of the transaction is around $ 251 million, of which Future Retail, will get up to $ 85.2 million through a clawback provision. A clawback is a provision which is a special contractual clause, typically included in employment contracts by financial firms, by which money already paid must be paid back under certain conditions.
In an interview, with regard to the e commerce giant Amazon Inc.,
Mr. Biyani said,
We are not in discussions of any stake sale at the moment
Earlier this year, there were talks about the CEO of Amazon, Jeff Bezos aligning with Mr. Biyani to discuss the strategic alliance. Alongside, back in March, there were reports that Amazon was about to acquire a 10 % stake in Future Retail! Well, looks like the ball is not in Amazon’s court!
As of now, Future Retail owns, the Indian hypermarket, supermarket and home segments with other significant brands such as Big Bazaar, Easy Day and Foodhall.
With the two major acquisitions already slipping off, let us see what else is in store for Amazon in the future!
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