Subhiksha to acquire majority control of Chennai firm
28 Jun 2008, 1456 Hrs

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Chennai, June 28 (ANI -Business Wire India): In a move to further accelerate its growth plans, Subhiksha, one of India's largest food and grocery discount retailers, is acquiring a majority stake in the Chennai-based Blue Green Constructions and Investments Limited.

The respective Boards of Subhiksha and Blue Green will meet on Monday to consider a merger of the two companies.

The merged entity will be called Subhiksha Limited and is expected to list its shares on the NSE/BSE/MSE where the shares are currently listed.

R Subramanian, the promoter of Subhiksha, said, "This transaction will ensure that Subhiksha has access to capital and will continue to be on the fast track of growth. It will also enhance value for our stakeholders and help us achieve our objective of becoming a US five billion dollar company."

Apart from food and grocery, Subhiksha is also India's largest mobile retailer.

"We are planning an entry into consumer durables to further enhance Subhiksha's value proposition to the Indian consumer. The company plans to have two million square feet of retail space in this segment in the next year" added Subramanian.

The proposed transaction is subject to all regulatory and other approvals. (ANI)