HUL rejects Temptation bid for marine biz

Consumer goods major Hindustan Unilever (HUL) announced that it has terminated the bid made by Mumbai-based Temptation Foods (TFL) to acquire HUL's marine foods business.

Temptation had submitted a binding bid in May 2007, after HUL obtained shareholder approval in March this year to transfer its marine foods export business.

This was subsequent to the decision by HUL's parent, Unilever, to exit from frozen foods, barring ice-cream, globally.

"The talks with Temptation Foods did not have a successful outcome. Consequently the binding bid submitted by TFL was terminated in August 2007," HUL said in a statement.

The announcement comes at a time when TFL's Qualified Institutional Placement (QIP) to raise Rs 114 crore to fund acquisitions went live. Last week, the company also received shareholder approval to raise more than Rs 90 crore through a preferential allotment.

"We had given a refundable deposit for the deal. However, there were a few issues to be resolved and we couldn't find an effective solution. So the bid was terminated in August 2007 as per the rules," said Vinit Kumar, strategic investor and head, Temptation Foods.

However, according to sources, executives from both companies were still in discussions and a sweetened offer by TFL could see the deal go through. TFL and Unilever executives refused to comment.

The size of HUL's marine business, including its manufacturing facilities, is estimated at about Rs 250 crore.

HUL recently expanded its customer base in the marine foods business in Europe and West Asia and also developed new markets in Mexico.

Temptation Foods recently bought Karen's Gourmet Kitchen (KGK), the foods brand managed by leading food expert, Karen Anand.

TFL is also looking to acquire a couple of other acquisitions, like Sil and Meal Maker, the non-core brands of Marico Industries.

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IN DEEP FREEZE

Temptation had submitted a binding bid in May 2007

The announcement comes at a time when TFL's Qualified Institutional Placement to raise Rs 114 crore to fund acquisitions has gone live

HUL recently expanded its customer base in the marine foods business in Europe and the West Asia

Temptation Foods had bought Karen's Gourmet Kitchen, the foods brand managed by leading food expert, Karen Anand