Chennai, May 12
ENDING months of speculation, RPG Enterprises on Thursday officially confirmed that it had concluded discussions with the Hong Kong-based Dairy Farm International , to terminate their joint venture agreements in India.
An RPG press release, quoting Mr Raghu Pillai, President, Retail Sector, RPG Enterprises, said that while details of the arrangement will be announced later, this would be achieved by RPG Enterprises offering its shareholdings in both the FoodWorld and Health & Glow businesses to other Indian investors as required under the Government approvals for joint ventures in retail in India. It would subsequently buyback a part of the existing business as agreed in the settlement.
The deal is expected to be completed by the third quarter of 2005 and would allow Dairy Farm International and RPG to pursue their respective strategies for retailing in India, adds the release.
An RPG spokesman said, "We believe that once concluded, this arrangement will enable RPG to leverage its existing retail assets in pursuit of consolidating and fast expanding its retail presence in this emerging industry."