Bombay Dyeing & Manufacturing Company has received an approval to sell / dispose-off its textiles processing unit situated at Ranjangaon, Maharashtra to Oasis Procon, New Delhi 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 board of directors at their meeting held on May 25, 2015 has approved for the same.
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 the company’s 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 five years from the closing date. The sale of undertaking will not have any impact on the company’s existing retail business ‘Home & You’.