Temptation Foods

With reference to news item appearing in a leading financial daily titled "Temptation Foods to buy 3 firms for Rs 180 crore", Temptation Foods Ltd has clarified as under:

"1. Company / Business Acquisitions:

The Company has plans to grow organically as well as inorganically and, hence, the Company is looking for various business acquisitions. To date, out of the bids submitted for three businesses, the time frame for two businesses has expired while negotiations for the third are on. Hence, the Company is not close to acquire three Companies.

2. Fund raising:

a. The issue of Fully Convertible Bonds (FCCBs) and Equity Shares to Qualified Institutional Buyers under chapter 13A of SEBI (DIP) Guidelines for up to an amount of Rs 114 crore is on;

b. The Company intends to issue warrants to promoters and non promoters on preferential basis under chapter 13 of SEBI (DIP) Guidelines at a price of Rs 150/- per warrant and raise about Rs 96 Crore;

c. The Company proposes to raise about US$ 200 Million through issue of FCCBs or other instruments; and

d. Shareholders’ approval has been taken for (b) and(c).

3. The proposed three business acquisitions referred to in (1) above include the Marico's two brands and the Everfresh business / brand quoted in the article.

4. The Everfresh acquisition if and when it happens Will be about Rs 40 Crore, based on the present asset base of the business.

5. The Company is looking at the acquisitions in the north and south of India in the processed foods category.

6. About 90% of the Company's products are consumed in the exports market.

7. One of the objectives of the acquisitions is to gain foothold in the domestic markets."