In addition, Grace Home Fashions LLC (GHF), a US subsidiary of GHCL, has completed the sale of specified assets (inventory and intellectual property) to Indo Count Global Inc pursuant to the terms of the Asset Transfer Agreement (ATA ), GHCL said in a regulatory filing.
“The company successfully completed the divestiture of its Home Textile business through an early sale on April 2, 2022, pursuant to the terms of the Business Transfer Agreement (BTA),” he said. .
Thus, effective April 2, 2022, the home textile business of the company located in Bhilad (Vapi), Gujarat, was officially transferred to Indo Count Industries and ownership of GHCL was terminated, he added. .
“The total consideration for the divestiture of the home textiles business has been calculated at Rs 608.30 crore,” GHCL said.
Sharing the details, GHCL said that the BTA transaction has been finalized for a total lump sum consideration of Rs 558.60 crore, which will be subject to validation of the customary working capital closing date adjustment in accordance with the OK.
The consideration for the specified assets of GHF has been calculated at USD 4.50 million (approximately Rs 34 crore).
“Additionally, Grace Home Fashions expects to make Rs 15.50 crore on its own account,” he added.
On December 6, 2021, GHCL, a leading soda ash manufacturer, announced that it had entered into a BTA for the sale of its home textiles business, as a going concern on the basis of a declining sale, to Indo Count Industries.
The company had already obtained the necessary approval from its shareholders, by postal vote dated January 21, 2022.