Amazon struck a deal that gives it the right to eventually buy a stake in India's Future Retail, as the US giant seeks to bolster its presence in one of the world's fastest-growing retail markets.
Amazon.Com NV Investment Holdings LLC agreed to buy 49 per cent of Future Coupons, Future Retail said in a filing on Thursday. The deal gives Amazon the option to buy all or part of Future Coupons’ shareholding in Future Retail, though that won’t be exercisable until between three and 10 years.
The terms of the agreement weren’t disclosed. The Indian company said earlier this month that Future Coupons held warrants that would give it a 7.3 per cent stake in the listed entity.
People familiar with the matter said last week that Amazon was in late-stage talks to acquire as much as 10 per cent of Future Retail, with the Indian company seeking a valuation of about 20 billion rupees (€252 million) for the stake.
Shares of Future Retail fell 4.6 per cent in Mumbai on Friday. – Bloomberg
