The Board of Directors of Garware Technical Fibres Ltd at its meeting held today i.e., 20th February, 2020, considered and accorded their consent in principle, for execution of an agreement for contribution / transfer, all of its rights, title and interest in and to the Business / Undertaking along with all its assets and liabilities in United States of America on a going concern basis to a proposed Acquirer (i.e. a proposed Subsidiary of the Company, which is being incorporated in USA), which will result into the proposed Subsidiary being converted into a wholly owned subsidiary of the Company.
Considering the increasing business operations of the Company and to have a more effective legal and business structure of operations in United States of America markets, it is proposed to form a Subsidiary company in United States of America and the same is being incorporated, which is the proposed Acquirer.
The overall Consideration is USD 6.51 Million as per the valuation reports of M/s. Ashit C. Mehta Investment Intermediates Limited, a SEBI registered Merchant Banker.
The Consideration for the contribution of Business / Undertaking (as defined in the Agreement) would be discharged solely by proposed Acquirer by issuance of one hundred (100) shares of Common Stock of the proposed Acquirer, which represent 100% shares of common stock of the proposed Acquirer and which will result the proposed Acquirer being converted into Wholly Owned Subsidiary of the Company.
Shares of Garware Technical Fibres Ltd was last trading in BSE at Rs.1389.8 as compared to the previous close of Rs. 1443.2. The total number of shares traded during the day was 1321 in over 255 trades.
The stock hit an intraday high of Rs. 1462.8 and intraday low of 1379.95. The net turnover during the day was Rs. 1881881.