RSWM acquires 50 pc stake in SISA
Rajasthan Spinning and Weaving Mills (RSWM) Ltd on Friday acquired 50 per cent equity stake in Spain -based SISA SA (SISA) for an undisclosed amount, to expand its footprint in value-added international yarn market.
By PTI |
MUMBAI: Rajasthan Spinning and Weaving Mills (RSWM) Ltd on Friday acquired 50 per cent equity stake in Spain -based SISA SA (SISA) for an undisclosed amount, to expand its footprint in value-added international yarn market.
"The acquisition of 50 per cent equity stake in SISA comes at attractive valuations and is not likely to have a major influence on the company's balance sheet," the company said.
The investment in SISA is being made by RSWM's wholly -owned overseas subsidiary. The foreign firm company would be rechristened as RSWM SISA SA.
"SISA brings with it a speciality and value-added yarn business in the international market, with a strong customer profile. It adds an established and well reputed marketing network to our operations, which will enable us to obtain better realisations for our high end yarns," RSWM Joint Managing Director Riju Jhunjhunwala said.
Moving ahead, SISA would operate as a jointly managed company, where RSWM would have equal board representation and the option to appoint key executives such as Chief Financial Officer and Controller and other posts in marketing and commercial functions.
The transaction is subject to any statutory or regulatory approvals that may be required in the company's and SISA's jurisdictions of operations, RSWM informed the Bombay Stock Exchange (BSE).
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