The Amazon Inc who has applied in the Singapore arbitration panel against the Future Group stating the $3.38 billion debt and asset sale of Future group to RRVL breaches the contract between Future Group and Amazon. Amazon wants the panel to stop the deal. Amazon has bought 49% of the Future Coupons stake which gives 7.5% of Future retail to Amazon and extends a provision to buy further Future retail stake for three year period.
Reliance Retail intends to enforce Future group deal soon
The Singapore arbitration panel on its hearing on October 26 has put on hold to the Future Group`s $3.38 billion asset sale to Reliance Industries. This is considered as an interim win for Amazon.com Inc. Amazon received this emergency order to halt the companies from proceeding with the deal until an arbitration tribunal is formed. Amazon who owns 7.3% stake in Future have not issued the letter of approval to the deal. Few sources said, Amazon has gained a comprehensive victory. However, the temporary halt is not enforceable in India as it has to be ratified by an Indian court.
Amazon in an effort to replace Reliance in RRVL- Future Group deal
Amazon who considers the deal between RRVL-Future group will give a tough competition against it, is now ready to replace RRVL. However, Amazon on its intrim stop says,"We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process".
The reason behind the sale of Future Group, Khiyani opens up