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Friday, Nov 29, 2002

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HLL pays Rs 44 cr for remaining 26 pc in Modern Foods

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MUMBAI, Nov. 28

FMCG major Hindustan Lever Ltd (HLL) today announced that it has acquired the remaining 26 per cent equity stake in Modern Food Industries (India) Ltd (MFIL) from the Government for Rs 44.07 crore.

The Ministry of Food Processing Industries has offered the balance 26 per cent shareholding in Modern Foods at a price of Rs 11,490 per equity share of Rs 1,000 each (38,356 equity shares).

In a notice to the bourses, HLL said Modern Foods would become a near 100 per cent subsidiary of the company.

For the moment, the board composition of Modern Foods would remain unchanged, a HLL spokesperson said.

In one of the earliest divestment, the Government sold 74 per cent stake in Modern Foods to HLL in January 2000. The sale was effected for a consideration of Rs 125.5 crore at an average cost of Rs 11,490 per share.

The Cabinet Committee on Disinvestment (CCD) had cleared the sale of the residual stake of 26 per cent to HLL in February 2002.

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