Shares of Future Group companies rallied up to 20% in intra-day trade on Friday, November 29, after the Competition Commission of India (CCI) cleared the stake sale in Future Coupons Ltd to Amazon.
Future Retail Ltd shares surged as much as 18.5%, while those of Future Consumer Ltd climbed nearly 16%. Future Enterprises Ltd and Future Market Networks Ltd were locked in an upper circuit of 20% and 5%, respectively. Meanwhile, shares of Future Lifestyle Fashions Ltd rose nearly 5% and those of Future Supply Chain Solutions Ltd gained 3% in Friday’s trade.
CCI on Thursday approved Amazon.com NV Investment Holdings’ proposal to acquire about 49% share in Future Coupons Ltd. “The proposed combination pertains to the acquisition by the acquirer (Amazon) of about 49% of the voting and non-voting equity shares of the target (Future Coupons),” a statement said, adding that a detailed order of the CCI will follow.
The proposed combination consists of certain other constituent steps involving Future Coupons Ltd, Future Corporate Resources Pvt. Ltd and Future Retail.
Interestingly, Future Coupons own 7.3% shares in Future Retail. With this transaction, Amazon would indirectly be able to acquire around 3.58% stakes in Future Group.
Future Coupons Ltd is principally engaged in marketing and distribution of corporate gift cards, loyalty cards and reward cards to corporate customers. Meanwhile, Amazon.com NV Investment Holdings is a direct subsidiary of Amazon.com Inc. (ACI) and belongs to the Amazon group. ACI is the ultimate parent entity of the Amazon group.