India Dealbook: Blackstone picks Future Lifestyle stake; Amazon eyes Reliance Retail

Photo: Bloomberg

In the latest M&A transactions, Blackstone has acquired a 6 per cent stake in Kishore Biyani-led Future Lifestyle while Amazon is in initial discussions to acquire up to 26 per cent stake in Reliance Retail.

Blackstone acquires 6% in Future Lifestyle

Global private equity major Blackstone has acquired about a 6 per cent stake in Future Lifestyle Fashion Ltd (FLFL), part of Kishore Biyani-led Future Group, for about Rs 545 crore (about $79 million).

Blackstone Tactical Opportunities Fund, BTO FBI III Pte Ltd, has acquired 11.6 million shares of FLFL from promoter entity Ryka Commercial Ventures Pvt Ltd in a secondary transaction, according to bulk deals data available on NSE.

The development comes almost a week after FLFL announced that it is raising Rs 300 crore from another private equity fund AION Capital Partners. The company will seek shareholder approval for the deal on August 26.

Amazon eyes 26% in Reliance Retail

E-commerce major Amazon is in initial discussions to acquire up to 26 per cent stake in the country’s largest brick-and mortar retailer Reliance Retail, The Economic Times reported.

Reliance was previously in talks with the Chinese tech giant Alibaba Group for the stake sale, but the talks did not go through owing to differences over valuation.  The deal with Reliance will give Amazon a huge platform to build its presence in India’s offline retail market, which still accounts for bulk of the shopping market.

Biyani and family own 53.43 per cent of FLFL while other investors in the company include L Catterton, PremjiInvest, L&T Mutual Fund, and LIC.