Indo Count Industries Ltd set to acquire 'GHCL Ltd, Home Textile business'
06 December 2021, Mumbai:
The company, one of the leading manufacturers of soda ash, had initiated the process of carving out its textiles business into GHCL Textiles Ltd, in order to segregate both businesses and to have two separate listed entities with mirror shareholding.
Chemicals major GHCL Ltd on Monday said it is divesting its home textiles business to Indo Count Industries Ltd for Rs 596 crore.
The company, one of the leading manufacturers of soda ash, had initiated the process of carving out its textiles business into GHCL Textiles Ltd, in order to segregate both businesses and to have two separate listed entities with mirror shareholding.
"In the interim, GHCL has got an opportunity to unlock the value of its home textiles business (HT business), not being its strategic growth area, by divesting the same to Indo Count Industries Ltd (Indo Count),” the company said in a regulatory filing.
GHCL said it expects to "realise a consolidated sum of Rs 596 crore from the divestment of its HT business”.
As part of the deal, the transfer of HT business will be made for a consideration of Rs 539 crore, of which fixed consideration is Rs 340 crore and the balance Rs 199 crore is towards net realisable current assets (subject to certain adjustments in accordance with the business transfer agreement to be paid by Indo Count to GHCL), the filing added.
Further, GHCl said that in line with the group’s decision of a complete divestment of HT business, its US-based subsidiary Grace Home Fashions LLC (GHF) has also entered into an Asset Transfer Agreement (ATA) for transfer inventory and intellectual property to Indo Count Global Inc, USA, a US subsidiary of Indo Count for Rs 37 crore.
moneycontrol.com (The news article has not been edited by DFU Publications staff)
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