AZB & Partners has advised Amazon led by a team of partners Ajay Bahl, Hardeep Sachdeva, Rachit Bahl, Priyamvada Shenoy, and Sachin Mehta; and Senior Associates Ankit Jaiswal, Shivang Sargoch and Gautam Kumar Bhargava.
After almost a year of negotiations, global e-commerce and technology giant Amazon.com is acquiring a 49% stake in Future Coupons, the promoter entity of Future Retail. The size of the deal has been estimated between ₹1,500 crore and ₹2,000 crore.
The transaction has helped Amazon in acquiring around a 3.6% stake in the Future group.
"We have been informed by Kishore Biyani on behalf of the existing shareholders forming part of the promoter group and Future Coupons Limited (promoters) that they have entered into a share subscription agreement and a shareholders’ agreement with Amazon.com NV Investment Holdings LLC (Amazon)," Future Retail said in a BSE filing.
Pursuant to these agreements, Amazon has agreed to make an equity investment in Future Coupons for acquiring a 49% stake comprising both voting and non-voting shares. "Amazon has agreed to invest in Future Coupons, which is engaged in developing innovative value-added payment products and solutions such as corporate gift cards, loyalty cards, and reward cards primarily for corporate and institutional customers. This investment will enhance Amazon’s existing portfolio of investments in the payments landscape in India," a Spokesperson for Amazon said in a response to a query.
Future Retail on its part maintains that Amazon’s stake buy is mainly an investment into the digital payments space. "This investment reflects our commitment to innovating for Indian customers and offer best-in-class shopping experience. This investment provides an opportunity for us to learn global trends in digital payments solutions and launch new products," its spokesperson said.
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