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Bombay Rayon buys garment business of Leela
05 Jul '07
3 min read
• All current assets as on effective date pertaining to the business;
• All current liabilities, secured loans, unsecured loans related to the business as on effective date to the extent equated to total current assets as referred in
• above;
• The leases of the land & building used for Business will be transferred on existing terms/ terms under re- negotiation to BRAL;
• Leasing out remaining specified immovable properties owned by Leela for a period of 5 years with a right to buy at pre- determined price.
As per the understanding a detailed MOU incorporating the agreed terms have been drawn. BRAL had make a payment of 25% of consideration i.e. Rs. 38.75 crores on signing of MOU on 3rd July, 2007 and balance of Rs. 116.25 crores on is payable on 18th August, 2007, the effective date for completing the Acquisition.
The initial payment of Rs. 38.75 crores to be made by BRAL will be provided by BRFL as its investment in share capital of BRAL. It will be thus a wholly – owned subsidiary of BRFL. The balance amount of Rs. 116.25 crores payable to Leela will be raised as Debt by BRAL separately.
• All current liabilities, secured loans, unsecured loans related to the business as on effective date to the extent equated to total current assets as referred in
• above;
• The leases of the land & building used for Business will be transferred on existing terms/ terms under re- negotiation to BRAL;
• Leasing out remaining specified immovable properties owned by Leela for a period of 5 years with a right to buy at pre- determined price.
As per the understanding a detailed MOU incorporating the agreed terms have been drawn. BRAL had make a payment of 25% of consideration i.e. Rs. 38.75 crores on signing of MOU on 3rd July, 2007 and balance of Rs. 116.25 crores on is payable on 18th August, 2007, the effective date for completing the Acquisition.
The initial payment of Rs. 38.75 crores to be made by BRAL will be provided by BRFL as its investment in share capital of BRAL. It will be thus a wholly – owned subsidiary of BRFL. The balance amount of Rs. 116.25 crores payable to Leela will be raised as Debt by BRAL separately.
Bombay Rayon Fashions Limited
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