In India, shares of Future Retail rose as much as 10 percent after Delhi High Court overturned its previous order that had stalled Future Group's ₹ 24,713 crore deal to sell its retail assets to Reliance Retail, in a setback for Future's partner Amazon.com Inc, which had challenged the sale.
The court's decision is the latest twist in the Future Group - Reliance retail deal, coming after the court last week sided with Future's partner Amazon.com Inc's challenge and put Future's asset sale to Reliance Industries on hold, which led to an appeal from the retail group. Future group,the country's second-largest retailer with over 1,700 stores, had agreed to sell its retail businesses to market leader Reliance last year.
A two-judge bench of the Delhi High Court has now lifted the status quo on the Rs 27,513-crore deal between the Future Group and billionaire MukeshAmbani-led Reliance Retail Ventures Ltd. The bench stayed the "operation, implementation and execution" of the single-judge Feb. 2 order until the next hearing date.
The court said that the appellant (Future Retail Ltd.) is not a party to the Amazon and Future Coupons Pvt agreement. Also, in a deal between Reliance Retail and Future Retail, Amazon is not a party. In the courts, Amazon has argued that an October decision by an arbitrator who had put the Reliance deal on hold is enforceable. Future has maintained that its retail unit was not a party to the arbitration agreement, and the order was not binding on the company.
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