Amazon has written to Future Retail for financial concerns. The proposal includes Amazon-backed private equity firm Samara Capital and FRL, in which Samara Capital retains its interest in investing Rs. 7k Crore for buying all retail assets, according to the sources.
Amazon has reached independent directors of FRL, including Gagan Singh, Ravindra Dhariwal, and Jacob Mathew, where it expresses its willingness and ability to help FRL, a debt-ridden company.
In response, the independent directors asked Amazon to confirm Rs. 3,500 crore into the cash-strapped retail in order to repay FRL’s lender by January 29, 2022.
“We confirm that Samara Capital retains their interest and committed to lead and take forward the term sheet dated June 30, 2020, signed amongst Samara, FRL, and the promoters of FRL, which contemplates a purchase consideration of Rs. 7,000 crore”, Amazon said in its reply to independent directors.
Amazon also sent letters to top officials, including Ashok Tyagi, Chairman, Securities, and Exchange Board of India (SEBI), Ashok Gupta, Chairman, Competition Commission of India, Sanjay Kumar Mishra, Director, Enforcement Directorate and G Mahalingam, Whole-time Member, SEBI. In addition to this, the letter has been sent to top executives at Union Bank of India, Bank of India, Punjab National Bank, Central Bank of India, State Bank of India, Bank of Baroda, UCO Bank, and Indian Bank.
“We are pleased that for the first time since our letter dated December 2, 2020, the independent director showed their willingness to consider Amazon’s assistance in addressing the financial concerns of FRL”, according to Amazon’s letter.
“The Samara Term Sheet provides for an acquisition of all retail assets of FRL, including small store formats like Easy Day, Aadhaar, Heritage through an Indian and controlled entity structure led by Samara and supported by Amazon.
There are several questions to Amazon and Future Group that have remained unanswered. Let’s find them in another report.