Once the merger is completed, Reliance Industries will invest Rs 8,500 crore to own 50 per cent stake in the merged entity
The board of Future Enterprises
is meeting on Saturday to take a call on raising of funds.
In a notice to the stock exchanges, the company said that the board of directors would consider and evaluate proposals to raise funds by way of issuance of bonds including debentures/non-convertible debt instruments/securities and/or any other instruments / securities, including through private placement or through any other permissible mode or any combination thereof, as may be decided by the board.
A source said the board would also look at the proposal to merge three other listed entities of the Future group with FEL.
Once the merger is completed, Reliance Industries
will invest Rs 8,500 crore to own 50 per cent stake in the merged entity.
Global retail giant, Amazon, which owns stake in one of Future group's companies
will dilute its stake and will not object to the transaction with RIL.
Reliance is planning a separate transaction with Amazon, which may lead to no-compete agreement between the two retail giants.
Both RIL and Future did not comment on the merger proposal in the works.