QIBs to meet Temptation''s acquisition of HLL''s marine business

Small cap firm, Temptation Foods, may acquire Hindustan Lever Ltd''s marine product business for Rs120 to Rs150 crore. "We have diclosed that we have bid for that business, but at this point, we are under a non-disclosure agreement. And I can''t comment anything beyond that," said Vinit Kumar, head, Temptation Foods.

He added that the company had the shareholders approval to raise the money. Kumar said, "Our shareholders have approved Rs150 crore that we are raising for a number of acquisitions that we are planning."

Asked about the route that the company would raise the funds for the acquisition, Kumar said, "We have decided to go the qualified institutional placement, or QIP, route and the QIP document is under preparation."

He said that at the annual general meeting on Monday, the company had released an information memorandum that has been put on the BSE website.

"We are looking at raising it in the form of a convertible note. It is a fully convertible note. At this point of time, that is the structure that we are talking to various investors," Kumar said.

As to the impact that the marine business acquisition would do to their business via synergies, Kumar said, "We are a frozen food company. If and when a marine acquisition does happen, obviously we are looking to synergise the frozen expertise that we have."