The transaction has already been approved by the Board of Directors in a meeting held on 26^th March, 2016. It will close at an amount not less than Rs 480 crore payable in a manner as agreed by Kesoram and Cygnet.

“Such disposal and transfer will be effective from close of business – 31^st March, 2016, and will further be subject to permission and consents, if any required. The company will seek shareholder approval for the proposed transaction through postal ballot,” the company filing said.

Cygnet is proposed to be converted into a wholly-owned subsidiary upon the company acquiring Kesoram's entire issued and paid-up share capital. While Cygnet, at present, is not a related party by the meaning of the Companies Act, 2013, it will be one after its conversion into a wholly-owned subsidiary.

The Board also announced the termination of Arvind Kumar Singh, CEO of Business Operations with effect from the first week of May, 2016. Enrico Malerba has been appointed as the company's chief business officer. (MCJ)

Fibre2fashion News Desk - India