Home / Knowledge / News / Textiles / Lanka's Textured Jersey to buy Indian firm for $15 mn
Lanka's Textured Jersey to buy Indian firm for $15 mn
01
Jul '15
Sri Lanka's knitted fabric manufacturer Textured Jersey Lanka (TJL) has said it will acquire a controlling stake in an Indian knit fabric manufacturer, Ocean India Pvt Limited for $15 million, the Sri Lankan media has reported.

The TJL, subject to obtaining necessary corporate and regulatory approval, will buy all 35.63 million shares of Ocean Mauritius Ltd., the parent firm of Ocean India, which operates a knit fabric manufacturing plant in Visakhapatnam.

TJL will pay half the price, $7.5 million in cash to the selling shareholders - Brandix Group, Jacob BAC, Compagnie Mauricenne de Textile Ltee (CMT) and Pioneer Elastic Holdings. The other half will be paid through a share swap by issuing new Textured Jersey Lanka shares.

The TJL will issue 35.2 million ordinary voting shares by way of share swap to the shareholders at Rs. 28.50 a share. The stated capital of TJL at present is Rs. 2.85 billion.

Brandix, a "related party" of TJL, currently holds 29.81 per cent of TJL shares and it be paid $11.28 million, and raise its stake in TJL to 32.11 per cent with the share swap.

The TJL Board in in May this year has decided to acquire Quenby Lanka Prints (Pvt) Ltd, a fabric printer, for $3.5 million.

The TJL in a stock market disclosure said the acquisitions are pursuant to the company's on-going regional expansion and capacity enhancement strategy.

"The acquisition of Quenby Lanka and Ocean India should potentially launch TJL to the next level of solution provision and innovation while also catering to growing customer demand, thereby adding significant long-term value to its shareholders and reinforcing its foot print as one of the leading textile players in the South Asian region," the company said in a statement.

In addition to the capacity enhancement and optimization for TJL, these acquisitions also offer prospect of margin improvements through business and production synergies, TJL said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: rawpixel.com from Pexels

Textiles | On 18th Jul 2018

Hike in import duty on textile-apparel by India beneficial

The Indian Government’s decision to raise import duty on textile and...

Moments of EPA signing in Tokyo. Courtesy: Twitter handle of Jean-Claude Juncker

Textiles | On 18th Jul 2018

EU and Japan sign Economic Partnership Agreement

European Union and Japan have signed an Economic Partnership...

Courtesy: Tego

Apparel/Garments | On 18th Jul 2018

Tego plans to expand product range in 2018-19

Tego, a company that creates premium athletic gear for modern...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search