HUL calls off deal with Temptation

MUMBAI: India’s largest consumer products company Hindustan Unilever (HUL) has terminated an agreement with frozen foods exporter Temptation Foods (TFL) to sell its marine business, putting an end to all media speculations over the past couple of months.

“TFL had submitted a binding bid dated May 11, 2007 to acquire the marine business of HUL. The talks with TFL did not succeed, and consequently the binding bid was terminated in August 2007,” HUL said in a statement. The scrip of TFL ended 3% down (Rs 6.40) at Rs 215 on BSE on Monday.

Earlier in February, HUL had said that the company will consider to approve transfer of undertaking of the company engaged in the business of manufacture and sale of marine products by way of sale or assignment. The move was said to be in line with the company’s strategy of exiting non-core businesses.

Earlier, HUL had sold its direct selling business Sangam to Wadhawan Food Retail for an undisclosed sum. When contacted, TFL principal investor Vinit Kumar said: “We had bid for the marine business of HUL, following which we were granted the exclusivity till July 31. Subsequently, further discussions were held with the company which were inconclusive.As of today, the exclusivity period has expired and the binding bid is not valid.”

Sources said the announcement does not come as a surprise. “TFL had got a refund of the Rs 1.50 crore earnest money that they had submitted to HUL for the exclusivity and so it does not come as a surprise,” an official said.