Future Group shares soar after court lifts hold on Reliance deal

Shares in Future Group companies jumped nearly 10% on Tuesday, a day after an Indian court overturned an order that had stalled Future Group`s $3.4 billion deal to sell its retail assets to conglomerate Reliance Industries Ltd.

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The court`s decision is the latest twist in the Future Group saga, coming after a New Delhi 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 Indian retail group.

A two-judge bench hearing Future`s appeal on Monday put on hold the New Delhi court`s previous ruling, two sources familiar with the proceedings said.

E-commerce giant Amazon has argued that Future breached certain 2019 contracts by agreeing to the deal with Reliance. The bench agreed that Future Retail was not a part of the 2019 agreement, the company said in a filing https://bit.ly/3tFlVj7 to the stock exchanges late on Monday.

Shares of Future Retail rose nearly 10% to 80.50 rupees in early trade, while Future Consumer, Future Enterprises and Future Lifestyle Fashions gained between 8.2% and 9.9%.

Future Retail is also set to report results for the quarter ended Dec. 31 later in the day.

(Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Rashmi Aich)

The story has been taken from a news agency