The Hindu Business Line : CLC group buys RPG stake in Spentex

THE Delhi-based CLC Group, which is engaged in manufacturing and exporting of yarn and fabric, has clinched a deal for acquisition of 48.87 per cent stake in Spentex Industries Ltd that was held by the RPG Enterprises.

With this acquisition, the CLC Group will have management control over Spentex, which produces about 29,000 spindles of high-quality cotton yarn with an annual turnover of Rs 43 crore.

RPG Group's decision to exit from Spentex, a 100 per cent export-oriented unit, was part of its programme to divest its businesses that do not fall into its core sector and, instead, consolidate its core strengths. Only last month, RPG had sold its cellular business in Chennai.

CLC, promoted by Mr Mukund Chowdhury and his associates, has acquired 1.08-crore fully paid up equity shares of Rs 10 each, representing 48.87 per cent of the total paid up equity share capital of Spentex.

Subsequent to the acquisition, CLC has made an open offer to the existing shareholders of the company to acquire about 44.44 lakh equity shares of Rs 10 each, representing 20 per cent of the paid up/voting equity share capital of Spentex at a price of Rs 6.60 each.

The company will be posting the Letter of Offer to the shareholders on February 16, while the dates for opening and closing of the offer have been fixed for March 1 and March 30 respectively.

More Stories on : Mergers & Acquisitions | Textiles

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