M&A

M&A

GHCL sells home-textile biz to Indo Count Industries for Rs.596-Cr

Press Release   Press Release  

Noida-based, publicly listed GHCL Ltd is to divest its home textiles (HT) business to Mumbai-based, publicly listed Indo Count Industries Ltd for INR 596 crore, by way of a slump sale. Transaction Square LLP and Anagram Partner LLP acted as the transaction advisor and legal advisor to this transaction, respectively, to GHCL. Edelweiss Finance & Investments acted as transaction advisor and Khaitan & Co acted as legal advisor to Indo Count. Under the deal, the HT business will be transferred for INR 539 crore, of which the fixed consideration is INR 340 crore and balance INR 199 crore is towards net realizable current assets, to be paid by Indo Count to GHCL. Also, GHCL's US-based subsidiary Grace Home Fashions LLC (GHF) is to transfer identified assets (inventory and intellectual property) to lndo Count Global Inc, USA, a US subsidiary of lndo Count, for INR 37 crore. In addition, GHCL expects to realise INR 20 crore on its own account. GHCL had decided to carve out its textiles business into GHCL Textiles Ltd, in order to segregate both businesses (textiles and chemicals) and to have two separate listed entities, with mirror shareholding. Presently, the scheme is under implementation. The remainder of the textiles business (other than HT) will now be demerged into GHCL Textiles Ltd.