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Amazon warns Future Group against holding meetings of its shareholders to approve asset deal

Amazon has warned Future Retail Ltd (FRL) against holding meetings of its shareholders scheduled next week to approve the sale of its assets to Reliance Retail. The veiled threats came in a letter that Amazon shot off to Kishore Biyani and other promoters on April 12. In the letter, seen by LiveMint, Amazon said that such meetings were illegal and would violate a host of agreements including Singapore International Arbitration Centre’s injunction on the sale of assets and a 2019 agreement that was signed when Amazon invested in FRL’s promoter firm.

The letter stated, “It is reiterated that any actions of voting in favour of the scheme or any steps in furtherance of or in aid of the scheme without Amazon’s consent by any director, authorised representative, proxies or agent on behalf of the promoters, promoter entities or FCPL would be considered an express violation committed by the Promoters and FCPL of valid and binding injunctions operating against them.”.

This comes on the back of a scheduled meeting of Future Group’s shareholders on April 20 and 21 where it would seek approval for the INR 24,500 Cr sale to RIL. The escalation comes a month after NCLT gave its nod to Future Group to convene the meeting of its shareholders seeking approval for the mega deal with RIL.

This adds to the ongoing saga between Future Retail and Amazon. The two sides have been warring on a slew of issues and have dragged the matter to a host of adjudicating bodies across borders. While some matters have gone in favour of Amazon, others have seen authorities siding with FRL and Reliance.

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