Future Retail Limited approves the acquisition of Andhra Pradesh Chief Minister N. Chandrababu Naidu family’s Heritage Foods retail business.
Naidu’s son N.A Lokesh and Future Group Chairman and Managing Director Kishore Biyani made the announcement . Heritage Foods includes the popular Heritage store chain of 124 stores in the southern cities of Hyderabad, Bengaluru and Chennai.
Heritage Foods Limited will spin off its retail, bakery, agri-sourcing and veterinary care business in a fully owned subsidiary for which the later will issue 1.78 crore equity shares to Heritage Foods retail shareholders.
The retail and allied businesses of Heritage Foods posted revenues of Rs 629.70 crore during 2015-16. Heritage Foods will own 3.65 per cent shareholding in Future Retail Limited. Lokesh said the valuation would be Rs 295 crore.
Future Retail will acquire 124 stores of Heritage Foods which will help them strengthen their foothold in Southern India. the company has an ambition of opening 4000 stores by 2021.