Hindustan Lever is selling of a part of its minority stake in Tasty Bite Eatables, to Preferred Brand Foods (India) for an undisclosed price.
PBFIL is a 51 per cent subsidiary of Preferred Brands Inc, promoted by US-based NRIs, which took over TBEL during 1997-98 by acquiring a 67 per cent stake in the company.
Preferred Brand Foods has sought government permission to acquire 59,530 non-convertible non-cumulative redeemable preference shares of a face value of Rs 10 each of HLL in Tasty Bite Eatables. FIPB had earlier this month given the go-ahead to the PBFIL proposal.
It is not immediately clear whether HLL has sold off its entire stake in Tasty Bite Eatables or not. HLL was not available for comment.
PBFIL already has been granted foreign collaboration approval and foreign equity participation of 74.22 per cent amounting to Rs 190.45 lakhs in TBEL through a downstream venture.
The Rs 13-crore TBEL currently has a dominant share in the Rs 200-crore ready-to-serve food market.