Bengaluru-based garments exporter Gokaldas Exports (GEX) on Saturday said its board has approved the amalgamation of BRFL Textiles Pvt Ltd (BTPL) with the company.
The BTPL amalgamation scheme approved by the board at its meeting on August 9 brings in a significant manufacturer of a wide range of fabrics that can bolster the supply chain for Gokaldas Exports range of products within the company’s fold, the company said. The move, GEX said, will create a vertically integrated business with operational and financial efficiencies. The draft Scheme of Amalgamation of BTPL Ltd with the company and their respective shareholders will be subjected to all necessary regulatory and shareholder approvals, the company stated.
The company said it had already made strategic investments in BTPL in June last year through optionally convertible debentures. Earlier this week, the company’s board approved increasing the shareholding in BTPL to 19 per cent, it said. BTPL has total assets of ₹877.13 crore with a net worth ₹147.57 crore and clocked a turnover of ₹371.42 crore for FY25. The draft scheme offers two alternatives of either pure equity or cash plus equity in GEX to the shareholders of BTPL, and every shareholder of BTPL will be able to choose from both options, it said.
On final approval of the draft scheme of amalgamation, the BTPL shareholders at their option will receive 40 fully paid equity shares of ₹5 each of GEX for every 3,581 equity shares of ₹10 held in BTPL or alternatively receive 30 fully paid equity shares of ₹5 each of GEX and cash of ₹8,952.50 for every 3,581 shares of ₹10 held in BTPL, the company said. With these options and including 19 per cent equity already acquired by GEX, the total acquisition cost of shares of BTPL will be ₹552 crore, Gokaldas Exports added.
News Courtesy : The Hindu Business Line.