RIL in race to acquire UK’s Debenhams, says report

Oil-to-retail conglomerate Reliance Industries Ltd (RIL) is said to be in the race to acquire Debenhams, a British multinational retailer operating department stores in the UK with franchise stores in other countries, Sky News reported on Wednesday.

“The Reliance Retail empire, which last year bought the world-famous British toy store Hamleys, is among a small number of parties in discussions with advisers to Debenhams about acquiring part or all of the 242-year-old retailer,” the Sky News report said, adding that people close to the process had indicated that the chain was keen to agree to a takeover by the end of September. However, better-than-expected trading has relaxed the urgency of that timetable in recent weeks, they said.

Debenhams, which is currently owned by a consortium of lenders, has been in administration since April, with investment bankers at Lazard responsible for coordinating talks with potential buyers, Sky News said.

RIL subsidiary Reliance Brands had acquired Hamleys for ₹620 crore last July in an all-cash deal. Reliance Brands operates joint ventures with global brands.

Mukesh Ambani, the world’s fourth-richest man, is betting his company’s future on retail and digital platforms, reducing the emphasis of its mainstay chemicals and refining business. Last month, RIL acquired the retail and wholesale business and the logistics and warehousing business of domestic rival Future Group for a cash consideration of ₹24,713 crore, expanding its reach in the country’s retail market. It is also expanding in the online space through its new commerce strategy through JioMart.

Reliance Retail on Wednesday said it has raised ₹5,550 crore by selling a 1.28% stake in its retail business to US private equity (PE) firm KKR and Co., as India’s most valuable company creates a war chest for its push into e-commerce.

The latest transaction, the second such in about two weeks, brings the total funding into Reliance Retail Ventures Ltd (RRVL) to ₹13,050 crore and follows a record ₹1.52 trillion of investments into RIL’s digital assets unit Jio Platforms Ltd earlier this year.

The KKR investment values RRVL at an equity value of ₹4.21 trillion, RIL said. The PE firm had also bought a 2.32% stake in Jio Platforms for ₹11,367 crore. On 9 September, California-based PE fund Silver Lake picked up a 1.75% stake in RRVL for ₹7,500 crore.