Future Retail Ltd updates on Singapore order in favour of Amazon in the matter of Future-RIL Deal

Future Retail Limited (FRL) has received a communication from the SIAC, enclosing an interim order of the Emergency Arbitrator in the arbitration proceedings under shareholders' agreement between Amazon, Future Coupons Private Limited and the promoter group. FRL is examining the communication and the order. It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings.

FRL has been legally advised that actions taken by the FRL / its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party.

As per the advice received by FRL, all relevant agreements are governed by Indian Law and provisions of Indian Arbitration Act for all intents and purposes and this matter raises several fundamental jurisdictional issues which go to the root of the matter. Accordingly, this order will have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.

In any enforcement proceedings, FRL would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay.

Shares of Future Retail Ltd was last trading in BSE at Rs.77.8 as compared to the previous close of Rs. 75.25. The total number of shares traded during the day was 890754 in over 7001 trades.

The stock hit an intraday high of Rs. 78.85 and intraday low of 75.3. The net turnover during the day was Rs. 69150040.

Source : Equity Bulls

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