Adani, Ambani in race to acquire Future Retail, submit EOIs

Future Retail: Asia’s richest man Gautam Adani and his closest rival Mukesh Ambani are in a race to acquire India’s debt-laden Future Retail Ltd. Reports say 13 companies besides Ambani’s Reliance Retail and April Moon Retail Private Ltd, a joint venture between Adani Airport holdings and Flemingo Group, have submitted expressions of interest (EOIs) to acquire Future Retail.

Bankruptcy proceedings

After Future Group’s flagship retail unit defaulted on loans and its lenders rejected a $3.4 billion sale of its assets to market leader Reliance Industries amid a legal challenge by Amazon.com Inc., banks initiated bankruptcy proceedings against the group.

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The deadline for submission of EOIs for Future Retail ended earlier this month. Besides India's top conglomerates Adani’s and Ambani’s, companies such as Shalimar Corporation Ltd, Nalwa Steel & Power, United Biotech, WHSmith Travel, Capri Global Holdings have also submitted EOIs tp acquire the company.

The deadline to submit the bids was extended after a lacklustre response initially. After the bids are received, the resolution professional will issue the final list of the prospective resolution applicants (PRA) “soon”. The earlier deadline to issue the final list was November 6.

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Final list

The final list of companies that submitted the EOIs will be issued on November 20. They will then be asked to submit a resolution plan by December 15.

Under the insolvency process, a total of 33 lenders including Bank of India and State Bank of India had submitted loan claims of about 210.6 billion rupees ($2.59 billion) in August.

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