RPG sells Spentex stake to CLC promoters

RPG Enterprises has divested its 48.87 per cent stake in Spentex Industries to the promoters of the CLC Global group-Mukund Chowdhury and his associates for an undisclosed price. Spentex is a 100 per cent export-oriented unit manufacturing cotton yarn.

The Rs 500 crore CLC group is at present engaged in manufacture of yarn, domestic trading and exports of yarn and fabric.

Under the sale agreement, subject to the compliance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, all assets, liabilities, customers and employees of Spentex will get transferred to CLC, the RPG group said in a media release.

The RPG group stake was held through power equipment company KEC and Cescon and is in line with its policy of focusing on its three core areas""power transmission, tyres and retail.

Spentex posted a turnover of Rs 43 crore in 2002-03 and losses of Rs 11 crore. It is listed on the Mumbai, Pune, Ahmedabad and the Kolkata stock exchanges. Spentex has an installed capacity of 29,232 spindles at Pune.

Chowdhury and his associates will now have to make an open offer for a minimum 20 per cent stake under the terms of the takeover code of the Securities & Exchange Board of India (Sebi).

The balance 51.13 stake in Spentex is distributed between the financial institutions and the public. The RPG group has also recently decided to sell its 79.24 per cent stake in RPG Cellular Services to the C Sivasankaran-owned Sterling Infotech for around Rs 209 crore.