Nusli Wadia led Bombay Dyeing & Manufacturing Company is selling its textiles processing unit located in Ranjangaon, Maharashtra to New Delhi based Oasis Procon Pvt. Ltd.
The deal has been struck, combining together all specified tangible and intangible assets in relation to the undertaking, but excluding its brand name and specific liabilities.
In a BSE filing, Bombay Dyeing said that the unit has been sold to Oasis Procon on a slump sale basis as a going concern and on an ‘as is where is’ basis for a consideration of Rs 230 crore.
“The net proceeds from the sale will be utilised to repay existing loans and reduce interest burden, or enhancement of working capital of the company or general business purpose,” it said.
The sale is conditional upon Bombay Dyeing shareholders’ approval and other customary closing conditions including technical, financial and legal due diligence.
As a term of the sale, the Company has agreed not to directly or indirectly engage in the business of export of bed linen and bed linen fabric in USA for a period of five years from the closing date.
It further informed that the sale of the unit will not have any impact on the Company’s existing retail business.
