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: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search