Future Retail acquires retail business of Heritage Foods
The Board of Directors of Heritage Foods approved the selling of retail, bakery and agri business to Future Retail and to demerge retail businesses from Heritage Food Retail Ltd into Future Retail Ltd.
Future Retail said, "In consideration for the demerger of Retail Business of HFRL into FRL in terms of the Scheme and based on share entitlement report issued, FRL will issue an aggregate of 1.78 crore equity shares of Rs 2 each, fully paid up to the equity shareholders of HFRL as on the record date on a proportionate basis".
The retail and allied businesses of Heritage Foods reported revenue of Rs 629.70 crore during FY16. On closure of the transaction, HFRL will own 3.65% of shareholding in Future Retail through fresh issuance of shares of the company.
Commenting on the consolidation, Kishore Biyani, Chairman & Managing Director, Future Retail, said, "The consolidation of Heritage small format store brings us closer to the homes of customers the three key metros in Southern India."
The shares of Future Retail closed at Rs 152.65 per piece, up 1.36%, or Rs 2.05 on BSE. While, the shares of Heritage Foods ended at Rs 879.60 per piece, up 9.55%, or Rs 76.65.