Spentex acquires Uzbek spinning firm for Rs 380 cr
Spentex Industries Ltd on Monday said it has completed the acquisition of Uzbek spinning firm Tashkent To'ytepa Tekstil for nearly Rs 380 crore, making the company country's largest spinning enterprise.
By PTI |
MUMBAI: Textile firm Spentex Industries Ltd on Monday said it has completed the acquisition of Uzbek spinning firm Tashkent To'ytepa Tekstil for nearly Rs 380 crore, making the company country's largest spinning enterprise.
In a filing on the Bombay Stock Exchange the company said the buyout, which was completed on Sunday, would catapult the company as the country's biggest yarn manufacturer with an installed capacity of over 5.70 lakh spindles.
Spentex said it was funding the acquisition through a combination of internal accruals, equity funding by Citigroup in the special purpose vehicle set up in Netherlands and borrowings from ICICI Bank.
The transaction comprises acquisition of two manufacturing facilities in the cities of Tashkent and To'ytepa. These plants are the largest yarn manufacturing facilities in Central Asia with a combined installed capacity of 2.20 lakh spindles and a weaving capacity of 236 air jet looms, Spentex said.
The purchase happened under the privatisation programme of the Government of Uzbekistan and Spentex would get a number of incentives including 15 per cent discount on raw cotton apart from exemption on corporate taxes, customs duty and value added tax.
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