At meeting held on 25 May 2015
Bombay Dyeing & Manufacturing Company announced that the Board of Directors of the Company at its meeting held on 25 May 2015, has granted its approval to the Company to sell / dispose off its textiles processing Unit at B-28, MIDC Industrial Area, Ranjangaon, Maharashtra, (Undertaking) to Oasis Procon, New Delhi (Oasis") together with all specified tangible and intangible assets in relation to the Undertaking (excluding its brand name and the specific liabilities), 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 of the Undertaking will be utilized to repay the existing loans and reduce interest burden, or enhancement of working capital of the Company or general business purpose.The sale is conditional upon BDMC 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 and/or indirectly engage in the business of export of bed linen/bed linen fabric with any person in the territory of the United States of America for a period of 5 (five) years from the Closing Date.
The sale of Undertaking will not have any impact on the Company's existing retail business; Home & You.
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