“The company has signed a term sheet to acquire additional 3409 shares (representing 52.11 per cent of total paid up capital) in its existing joint venture in Indonesia viz PT Five Star Textile Indonesia,” Bombay Dyeing said in a filing with the Bombay Stock Exchange.
“With this additional acquisition, the shareholding of the company in the joint venture will rise to 86 per cent from 33.89 per cent at present, thereby making it a subsidiary of the company. This is a strategic move to wind up the loss making joint venture in due course,” it added.
Five Star Textile was set up in 1979 in Bandung, Indonesia, for manufacturing and sale of yarn, fabric and other textile products. (RKS)
Fibre2Fashion News Desk – India