Temptation Foods, the Mumbai-based frozen foods exporter, is all set to revive talks with Marico Industries for buying the food brands Sil and Meal Maker, after receiving the approval of its shareholders to raise Rs 150 crore.
Meal Maker is a health foods brand that belongs to the soya foods category that has Ruchi Soya's Nutrela among other players.
Marico had acquired the brand from an Indore-based company in 2002.
Sil used to be a processed fruit and continental food brand with a variety of foods in cans and bottles. The range was rationalised after Marico started managing the brand in 1993.
At present, Marico claims that Sil is the second-largest brand in the fruit jams category. The brand also has a presence in other processed food segments such as sauces, baked beans, Chinese vinegar, sweet corn soup and mayonnaise.
Sources close to the development said that the acquisition was likely to be made for Rs 15-20 crore.
Apart from Marico's foods brands, Temptations is also in talks with Hindustan Unilever to acquire its marine foods business.
Currently, Temptation is in the process of raising money to fund its acquisitions. The company recently received approval from its shareholders to raise up to Rs 150 crore through the issue of securities, including FCCBs.
According to a company statement, Temptation will issue up to 29.5-lakh convertible warrants to Venture Business Advisers at a price determined by the SEBI guidelines, subject to a floor price of Rs 150 per equity share.
It will also issue a further 35 lakh equity shares on a preferential basis to persons other than the promoters, at a price determined by the SEBI guidelines, subject to a floor price of Rs 150 per equity share.
The company also intends to issue $200 million worth of financial instruments through FCCBs, ADRs to persons other than the promoters and shareholders.
"We are raising money to acquire companies and once we have enough money we will finalise the deals. The only way for us to grow is through mergers and acquisitions. Hence, we are looking at all possibilities," said Vinit Kumar, strategic investor and head, Temptation Foods.
Temptation Foods is also in talks with the second-largest player in the frozen foods business, Everfresh.
Everfresh is a unit of Chambal Fertilisers. The deal is likely to be settled for Rs 40 crore. The sales of Everfresh touched Rs 19.80 crore in 2006-07.