Samara Capital ready to invest Rs. 7K crore in Future Retail: Amazon.

US e-commerce giant Amazon has again written to independent directors of Future Retail (FRL), including Gagan Singh, Ravindra Dhariwal, and Jacob Mathew, expressing its willingness and ability to help FRL address its financial concerns. This included the solution proposed in the term sheet between Amazon-backed private equity firm Samara Capital and FRL, in which the former contemplated an infusion of Rs. 7,000 crore in the Kishore Biyani firm.

Amazon has reached out to FRL in response to the retailer's letter in which the company said that it is willing to accept Amazon’s proposal but under certain conditions, and assessment of the proposal will be subject to FRL’s legal obligations.

Amazon has also sent the letter to top officials, including Ajay Tyagi, chairman, Securities and Exchange Board of India (SEBI), Ashok Gupta, chairman, Competition Commission of India (CCI), Sanjay Kumar Mishra, director, Enforcement Directorate, and G Mahalingam, whole-time member, Sebi. It has also been sent to top executives at Union Bank of India, Bank of India, State Bank of India, Bank of Baroda, Central Bank of India, Punjab National Bank, UCO Bank, and Indian Bank.

“We are pleased that for the first time since our letter dated December 2, 2020, the independent directors are willing to consider Amazon’s assistance in addressing the financial concerns of FRL,” said Amazon’s letter to FRL’s independent directors (dated January 22) which Business Standard has reviewed.“We note that significant time has been lost on account of the unwillingness of FRL and the independent directors to consider potential solutions facilitated by Amazon in the past. Nevertheless, we reaffirm our offer to assist FRL within the framework of our rights under the agreements.”

In this regard, Amazon confirmed that based on FRL’s letter dated January 21, Samara Capital (Samara) has reiterated to Amazon that it remains committed to lead and take forward the term sheet dated June 30, 2020, signed among Samara, FRL and the promoters of FRL, which contemplates a purchase consideration of Rs. 7,000 crore with the assistance and cooperation of the independent directors.

“Pertinently, the Samara Term Sheet provides for an acquisition of all retail assets of FRL, including the “small store formats” comprising the ‘Easy Day’, ‘Adhaar’ and ‘Heritage’ brands, through an Indian owned and controlled entity structure led by Samara and supported by Amazon,” said Amazon’s letter.

Queries to Amazon and Future Group remained unanswered until the time of going to press.

BS