Amazon confirms Samara is interested in buying all retail assets of FRL

Amazon has written to independent directors of Future Retail Ltd FRL confirming that Samara Capital remains interested and committed to invest Rs 7,000 crore for buying all retail assets of the debt-ridden company, and asked the retail firm to provide existing due diligence reports to Samara by Sunday, according to sources.

On January 19th, Amazon approached the independent directors of FRL, reiterating its willingness to assist the Mumbai-based company in addressing its financial concerns. The independent directors had asked Amazon to confirm by January 22 that it would infuse Rs 3,500 crore into the cash-strapped retailer in order to repay FRL's lenders by January 29, 2022.

A copy of the letter was seen by PTI, which contemplates a purchase consideration of Rs 7,000 crore.

The Samara Term Sheet provides for an acquisition of all retail assets of FRL, including the small store formats that comprise the Easy Day', Adhaar' and Heritage' brands, through a Indian owned and controlled entity structure led by Samara and supported by Amazon, said the e-commerce major in the letter.

Amazon said that the transaction envisaged in the Samara Term Sheet would ensure availability of funds at FRL at the earliest, through an asset sale and equity infusion, which would be a direct antidote to FRL's indebtedness.

Emails sent to Amazon and Future did not elicit any response.

Earlier this month, Future Retail had said it had missed the due date for payment of Rs 3,494. It could not sell assets due to its ongoing litigation with Amazon, which has impacted its monetisation plans, and banks and lenders have had to send 56 crore to banks and lenders.

In December, fair trade regulator Competition Commission of India CCI suspended the approval for Amazon's deal to acquire a 49 per cent stake in Future Coupons Pvt Ltd FCPL FRL's promoter, while slapping a penalty of Rs 202 crore on the e-commerce major.

The order of the CCI was challenged by Amazon before the National Company Law Appellate Tribunal, which has issued a notice to the fair trade regulator and FCPL. The NCLAT wants to list the matter on February 2 for the next hearing.