Future Group stocks rally 15-20% as CCI clears stake sale in Future Coupons to Amazon
Future Coupons is principally engaged in marketing and distribution of corporate gift cards, loyalty cards and reward cards to corporate customers
November 29, 2019 / 11:19 AM IST
Shares of all Future Group companies gained 15-20 percent intraday on November 29 after the Competition Commission of India (CCI) cleared the acquisition of stake in Future Coupons by Amazon.
Future Retail rallied 18.2 percent intraday, Future Consumer surged 14.8 percent and Future Enterprises rose 19.86 percent on the BSE.
Among other group stocks, Future Market Networks gained a percent, Future Lifestyle Fashions was up 1.7 percent and Future Supply Chain Solutions climbed two percent.
CCI on November 28 approved Amazon.com NV Investment Holdings' proposal to acquire about 49 percent share in Future Coupons. "The proposed combination pertains to the acquisition by the acquirer (Amazon) of about 49 percent of the voting and non-voting equity shares of the target (Future Coupons)," a statement said.
The proposed combination consists of certain other constituent steps involving Future Coupons (FCL), Future Corporate Resources (FCRPL), and Future Retail (FRL).
Amazon.com NV Investment Holdings is a direct subsidiary of Amazon.com (ACI) and belongs to the Amazon group. ACI is the ultimate parent entity of the Amazon group.
FCL is principally engaged in marketing and distribution of corporate gift cards, loyalty cards and reward cards to corporate customers.
FRL (and its subsidiaries) are active in the Indian retail market and currently operate multiple retail formats in hypermarkets, supermarkets and convenience stores under various brand names.
FCRPL is engaged in business of management consultancy services and trading in goods and services and has investments in various Future Group companies.(With inputs from PTI)