Vardhman Textiles Board approves hiving off sewing thread business
01 Mar '07
2 min read
Vardhman Textiles Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 26, 2007, has approved a proposal for vesting of the sewing thread undertaking of the Company comprising of thread units located at Hoshiarpur & Ludhiana (Punjab), Perundurai (Tamil Nadu) alongwith the spinning unit at Hoshiarpur, including all assets and liabilities associated with the said undertaking in its subsidiary, Vardhman Yarns & Threads Ltd ("VYTL").
The proposal also envisages demerger of the threads undertaking of M/s. Vardhman Threads Ltd (VTL) including all assets and liabilities associated with such undertaking and its vesting in VYTL.
The said proposal is to be carried out through a scheme of arrangement, reorganisation and demerger (the "Scheme") amongst the Company, VTL and VYTL and their respective shareholders and creditors in accordance with Sections 391-394 of the Companies Act, 1956.
The salient features of the Scheme are as follows:
(i) Vesting of the threads undertaking of the Company comprising of thread units located at Hoshiarpur & Ludhiana (Punjab), Perundurai (Tamil Nadu) alongwith the spinning unit at Hoshiarpur, in VYTL, as a going concern on a slump sale basis together with all other assets and liabilities associated with the undertaking for a lumpsum consideration of Rs 260 crores based on the valuation done by independent valuer, M/s. ICICI Securities Ltd. The appointed date for vesting of the threads undertaking of the Company will be the effective date of the Scheme.
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