Lotte buy is sweet news for Parry's

DALAL STREET SPIKES

Shares of Parry's Confectionery went up 8.9 per cent to close at Rs 241.30 with the South-based Murugappa group selling off its entire stake in the company to South Korea's Lotte.

The shares opened at Rs 228, which was also the low for the day and went to a high of Rs 265.80. On the BSE, 30,507 shares of the company were traded.

An agreement was signed between the Murugappa group and Lotte to sell the former's stake in Parry's at a price of Rs 283.12 per share.

This is nearly a 14 per cent premium to the prevailing market price of Parry's which is at around Rs 247-249.

The Murugappa group has been intending to exit from the confectionery business for quite sometime now.

However, of late the rumour mills were working overtime as the group got closer to a deal, though the actual buyer remained a secret until the announcement was made.

The scrip has gained more than 50 per cent over the past one month purely on the strength of this development.