Venkys (India) announced on Wednesday that the company's board of directors has approved a proposal to acquire poultry and packaging business operations, ongoing concern basis, of Venkateshwara Hatcheries (VHPL), its holding company, situated in Northern India in the state of Haryana, Punjab, Himachal Pradesh and Uttarakhand.The acquisition is estimated to cost around Rs 750 million.
The acquisition is a part of inorganic expansion plan of the company which will consolidate poultry operations in Northern India thereby increasing operational efficiency due to synergy and strengthen the geographical presence for the company in Northern India.
This will increase long-term value for all stakeholders. The proposed acquisition will become effective once definitive agreements are signed in this regard, subject to all requisite regulatory and statutory approvals. Barring unforeseen circumstances the company proposes to complete acquisition by end of financial year 2013-14.
Shares of the company gained Rs 8.15, or 1.76%, to settle at Rs 471.10. The total volume of shares traded was 6,960 at the BSE (Wednesday).