Hyderabad: Kishore Biyani-led Future Retail Ltd today said its board of directors has approved the acquisition of retail and allied businesses of Heritage Foods Ltd, promoted by the family of Andhra Pradesh Chief Minister N Chandrababu Naidu.
The retail and allied business of Heritage Foods had posted Rs 629.74 crore revenues during the last financial year.
"On closure of the transaction, Heritage Foods will own 3.65 per cent of share holding in Future Retail Ltd through fresh issuance of shares by the company," a statement from Future Group said.
As part of the scheme of arrangement for the acquisition, Heritage Foods will spin off its retail, bakery, agri-sourcing and veterinary care businesses to a fully-owned subsidiary.
Subsequently, all these businesses except veterinary care will then be merged with Future Retail Ltd. The retail business of Heritage Foods currently runs a chain of 124 stores in three southern cities of Hyderabad, Bengaluru and Chennai.
