Future Retail down 5% as Amazon acquires stake in Future Coupons
Mumbai, Aug 23 (IANS) Shares of Future Retail settled over 5 per cent lower on the Bombay Stock Exchange (BSE), as the company announced that Amazon will acquire a 49 per cent stake in Future Coupons.
Future Coupons holds a 7.3 per cent stake in Future Retail.
The shares of Futures Retail on the BSE closed at Rs 390 per share on Friday, lower by Rs 23.45 or 5.67 per cent from its previous close.
The company in a regulatory filing on Thursday evening said: "We have been informed by Kishore Siyani on behalf of the existing shareholders forming part of the promoter group and Future Coupons Limited (Promoters) that they have entered into a share subscription agreement and a shareholders' agreement with Amazon.Com NV Investment Holdings LLC (Amazon)."
"Amazon has agreed to make an equity investment in Future Coupons Limited for acquiring a 49 per cent stake comprising both, voting and non-voting shares," it said.
As part of the agreement, Amazon has been granted a call option which allows Amazon to acquire all or part of the promoters' shareholding in Future Retail and is exercisable between the third to tenth years, in certain circumstances, subject to applicable law.