INDIA: Dairy firm Kwality cools stake sale claims, admits expansion plans
Indian dairy Kwality is looking to expand
Indian dairy group Kwality has attempted to cool claims it is in talks to sell a stake in the business - although the company has admitted it is looking to raise funds for expansion.
A report in The Times of India said Kwality, which owns brands including Dairy Best, was in negotiations to sell up to 15% of the firm to Rabo Equity Advisors, the private-equity arm of Rabobank.
However, publicly-listed Kwality said there had been "no discussion with Rabo Equity Advisors in recent months to offload our stake".
In a statement to the Bombay Stock Exchange, Kwality said: "Our company is in phase of expansion, and is scouting various opportunities to raise funds through debt/equity. But so far nothing has been finalised. We are speaking to some funds/investors but these discussions are at early stage and no negotiations have happened or proposal for investment has been received."
The company added its AGM, held in September, had passed a resolution to raise funds through "various instruments" including through equity up to a limit of INR10bn (US$160.6m).
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