(This is an opinion published on Bloomberg) Two of the richest people in the world, struggling over the nearly bankrupt Indian retailers, has made so much noise awakened by the board super cranky.
In less than a week, three independent directors in the future Ltd.
has shot two letters to the state competition authorities, alleging that Amazon.com deliberately misled regulators about the true nature of the investment in 2019 in a related entity.
They want the antitrust watchdog to cancel the transaction.
2025 dollar bonds of retail in the future rose slightly Monday, although they are still trading at 61 cents to the dollar.
Based on what was said at the Singapore arbitration court on the subject of false allegations by Amazon, maneuver it looks like a long shot.
But one can never predict the course of regulatory action in India.
If Gambit succeed, Asia’s richest businessman, Mukesh Ambani, may be able to get a retail store in the future after all, the deal Amazon boss Jeff Bezos has so far managed to block the court process.
Scapping of Amazon’s Investment will leave US retailers without a valid contract to stop the sale of assets to Ambani.
It is rare for the Indian board to question the legality of the agreements they have engaged.
But then, the stakes are high in the Ambani vs Bezos Battle.
The result could walk faced with deciding which of the two billionaires who will ultimately control the retail market of $ 800 billion in India.
This is not war, the directors may sit – not to sink under the weight of 190 billion rupees ($ 2.5 billion) liability, and loss nonstop jumped 80% from the previous year in the six months through September.
Depletion of the future, a pioneer of modern mass retailing in India with 1,500-plus stores spread over 16 million square feet, began some time ago.
Amazon’s $ 192 million paid for the ownership of 49% on a coupon founder Kishore Biyani, Pvt.
Translated indirectly owns approximately 10% of the retail future of publicly traded, at a premium price to the prevailing stock price.
Amazon, which gives money expressly for coupons to invest in debt-laden retail, insisted on a limited list of parties to whom the physical store can not be sold without the e-commerce giant that continually.
Ambani’s name in the list, and that is why Bezos initiated arbitration proceedings for breach of contract when the future brings retail tycoon No.
1 India’s new $ 3.4 billion rescue after being hit hard by the pandemic last year.
But now the director cried foul, claiming that when they know about the restricted list, they do not realize that a small stake in the future Amazon effectively control it.
That, they said, would violate the foreign investment law in 2018 that prohibits the Indian e-commerce market of investing in companies that also sell goods on its platform.
“We did not realize that it was actually Amazon that are driving the future of retail,” said Independent Director Ravindra Dhariwal to Bloombergquint.
“We were misled by Amazon, we are blinded to commit an illegal act.” An Amazon spokesman declined to comment, although it is not quite clear how the Seattle-based company can mislead future retail council, which receives advice from his lawyer.
It was also not immediately clear if the letter of the Board of Directors expresses something completely new.
In appreciation party last month, Singapore arbitration court dealing with the issue of alleged wrong with Amazon.
Amazon “does not hide his interest in the retail future” of the Competition Authority of India, said the panel, adding that “negative rights, protector, specials and material material” that would accrue to the Amazon disclosed, as well as the fact that the proposed combination also includes retail future.
Although Ambani’s Reliance Retail Ventures Ltd.
has extended the deadline for completing the acquisition of a long-delayed until March 2022, the window to save the deal was closed.
The Tribunal has decided that Singapore Retailers India is a party to the shareholders agreement between Amazon and future coupons even though it is not a signatory.
At the same time, a pandemic-related moratorium on loan payments ended in September.
Payments to banks will start maturing since January.
When the directors shared their second request to the antitrust watchdog to the stock exchange on Sunday, they also signed a half-yearly financial results of the company.
They look awful.
Equity cushion existing $ 147 million in March had vanished.
Taken place on the balance sheet by $ 164 million hole.
No wonder the council suddenly very awake and hyperactive.