Textured Jersey in major Indian acquisition
Textured Jersey Lanka PLC (TJL) hopes to acquire Ocean India (Pvt)
Ltd, further to the disclosure made last February with regard to the
initiation of independent valuations and due diligence studies to
acquire a controlling stake in that company.
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Sriyan de Silva Wijeyeratne |
Ocean India (Pvt) Limited, is a knit fabric manufacturing operation
in Visakhapatnam, India. The Board of Directors of Textured Jersey will
acquire, subject to obtaining the corporate and regulatory approvals,
the entirety of the issued shares of Ocean Mauritius Limited, a company
incorporated in Mauritius, the parent company of Ocean India.
TJL which has maintained a strong balance sheet owing to sound
business performance, would pay US $ 15 million to the sellers, Brandix
Group, Jacob BAC Ltd, Compagnie Mauricenne de Textile Ltee and Pioneer
Elastic Holdings Ltd. The consideration is to be paid in the form of 50%
cash and the balance 50% by the issue of shares in TJL to the sellers.
The Board of Directors of TJL will issue, subject to obtaining the
corporate and regulatory approvals, 35,197,368 ordinary voting shares of
TJL, by way of a share swap, to the sellers in consideration of the
transfer of 17,815,000 shares in Ocean Mauritius, to TJL, by the
sellers. The share swap is subject to the Colombo Stock Exchange
approving in principle the issue and listing of such shares and the
obtaining of shareholder approval at a general meeting.
TJL had also acquired Quenby Lanka Prints (Pvt) Limited, and the
acquisition will place the company on an altogether different platform.
A formidable player in the textile industry, TJL will thus become the
only Sri Lankan based multinational fabric mill, and the lead player in
South Asia.
CEO, TJL, Sriyan de Silva Wijeyeratne said, "The solution flexibility
Textured Jersey now possesses will bring significant benefits, shorter
lead times and stronger innovation abilities to our growing customer
base. Shareholders too should see greater synergy and long-term growth
prospects as a result of these bold moves."
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