FUTURE GROUP – RELIANCE DEAL
Appears Win-Win
- Future Gets a Buyer
- Reliance Gets an asset to grow
- Banks don’t have to take a big haircut
Only concern:
- Will other listed players feel the competitive heat? Both in the Markets and the Market Place?
Future Merger Ratio +ve for other listed entities
Swap Values
Future Cons at 18 vs CMP of 11.5 (+57%)
Future Retail at 202 vs CMP of 135.2 (+49%)
Future Life at 232 vs CMP of 145 (+60%)
Future Supply at 262 vs CMP of 151 (+74%)
Future Mkt Network at 36 vs CMP of 27 (+35%)
Reliance – Future Deal
Assuming the value of Future Ent as 17.65 based on Pref Allotment Price for Reliance vs CMP 20.2
Swap Values
Fut Cons at 16 (+38.4% prm)
Fut Retail at 178 (+31.8% prm)
Fut Life at 205 (+41.1% prm)
Fut Supply at 231 (+53.1% prm)
Fut Mkt at 32 (+19.2% prm)
FUTURE & RELIANCE
What Remains in FUTURE ENTERPRISE?
Consumer & Fashion:
FY20 Rev at 7371 Cr, EBITDA at 433 Cr
Co Says: Can grow at 20-25% CAGR
Investments:
Insurance Biz, NTC Mills and other JVs = 4000 Cr
Total Debt at 5115 Cr
Net Debt at 2315 Cr (Less 2800 Cr RIL Pref)
