In response to the news item published in today's Business Standard (reproduced in my previous posting) Heritage Foods now issued a clarification to BSE as follows :
MY OBSERVATIONS
1) Company not denied the investment by Azim Premji's investment fund, which happened during last week of October and first week of September at a price of Rs.380- 390.
2)Heritage denied the entry of a strategic Investor to the main company but nothing commented about a dilution of stake in their retail venture. I feel ,in near future company will de-merge its retail operations into its wholly owned subsidiary and divest some stake of this subsidiary to a strategic investor . This will surely help the company to reduce its financial burden to a large extent and also help the company to retire its debt substantially over the next few years.
3) Regarding open offer by a strategic player for the company with a TOTAL transaction value of $ 100 Million is really an unthinkable figure. If the author mean this value is for ENTIRE company , based on some of the recent transactions happened in dairy industry in India it should be many times higher than the mentioned figure and in this case I think the promoters will not dilute any stake in their main company ( Heritage Foods) at this point of time.
| With reference to the news item appearing in a leading financial daily titled "Premji fund back in retail with Heritage Foods stake buy ", Heritage Foods (India) Ltd has clarified to BSE the following :- "1. The Company decided to subsidiarise Retail business and a wholly owned Subsidiary Company namely Heritage Foods Retail Ltd was incorporated and the decision of the Board was informed to the Stock Exchanges on September 26, 2008. Company is open for strategic partnership in retail business for accelerating its growth. However before finalizing any of such deal the Company will follow the prescribed guidelines as per the Listing Agreement. 2. Company is not looking for any strategic investor at the group company level (HFIL) and the promoters are not looking to sell their stake. 3. The buzz in the market regarding open offer by a strategic player with a total transaction value of $ 100 Million, is not true." |
MY OBSERVATIONS
1) Company not denied the investment by Azim Premji's investment fund, which happened during last week of October and first week of September at a price of Rs.380- 390.
2)Heritage denied the entry of a strategic Investor to the main company but nothing commented about a dilution of stake in their retail venture. I feel ,in near future company will de-merge its retail operations into its wholly owned subsidiary and divest some stake of this subsidiary to a strategic investor . This will surely help the company to reduce its financial burden to a large extent and also help the company to retire its debt substantially over the next few years.
3) Regarding open offer by a strategic player for the company with a TOTAL transaction value of $ 100 Million is really an unthinkable figure. If the author mean this value is for ENTIRE company , based on some of the recent transactions happened in dairy industry in India it should be many times higher than the mentioned figure and in this case I think the promoters will not dilute any stake in their main company ( Heritage Foods) at this point of time.
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