Reliance Buys Future Assets for $3.4 Billion; Bonds Jump
- Ambani group gets Future retail, warehousing, logistics assets
- Future Retail stock, dollar bonds climb on deal optimism
Mukesh Ambani
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Reliance Industries Ltd. is buying assets of debt-strapped rival Future Group for 247.1 billion rupees ($3.4 billion), almost doubling the footprint of India’s No. 1 retailer and largest company by market value. Future Retail Ltd. bonds gained and its shares soared 20% in Mumbai trading Monday.
The deal includes Future’s retail, wholesale, logistics and warehousing units, Reliance Retail Ventures Ltd. said Aug. 29 in a statement. Dollar notes sold by Future Retail rose 20 cents to 93.5 cents on the dollar Monday, the biggest jump since the bond’s sale in January, according to Bloomberg-compiled prices. The unit averted a default on the securities this month.