Heritage Group's shares rise by 12% on confirmation of talks with Future Group
It was reported that Kishore Biyani headed Future Group is in advance talks to acquire the retail arm of Heritage Foods.
Heritage Group on Monday confirmed that it has been in discussion for the sale of its retail business to Future Group. It however said that there has not been any agreement currently and “all discussions at this stage are exploratory in nature”.
“We confirm that both groups have been in discussion for possible business association. However, at present there is no legally binding agreement on any business collaboration/association and all discussions at this stage are exploratory in nature. Accordingly, there is no disclosure obligation that is triggered,” the company said in a BSE filing.
It further said that they are committed to inform the shareholders about any definitive transactions but would avoid giving any disclosures about possible transactions to avoid any speculative activities.
The company said that they would inform about the decision or transaction only once the board approves it or any definitive transaction documents are executed.
Earlier, it was reported that Kishore Biyani headed Future Group is in advance talks to acquire the retail arm of Heritage Foods. If the acquisition deal goes through it would be the second largest for the company in south India in the past two years and would add over a 100 grocery stores in Hyderabad, Chennai and Bengaluru.
Heritage Foods' shares rose over 11% on reports of an expected sale of its retail arm to Future Group.
Heritage Foods shares on BSE rose by 11.80% or Rs 96.55 by 14:10 hours, at Rs 915 per piece. While the shares of Future Retail at 14:06 hours were down 0.50% or Rs 0.75, at Rs 150.05 per piece.