Arvind Fashions Ltd signs agreement for sale of Flying Machine business

Arvind Fashions Limited and Arvind Lifestyle Brands Limited, a wholly owned subsidiary of the Company have each signed definitive agreements to transfer by way of sale, of the wholesale trading business and the retail trading business in "Flying Machine" brand respectively to a wholly owned subsidiary, Arvind Youth Brands Private Limited. The Board of Directors of the respective Companies had in February approved the sale as a "going concern" on a slump sale basis for a lump sum consideration to be mutually agreed of not less than the book value of the division as appearing on the date of actual transaction. The shareholders of the Company have also approved the transaction pursuant to Section 180 of the Companies Act, 2013 on March, 26, 2020 through postal ballot.

The Company will receive lumpsum consideration of Rs. 61.9 crores from the transaction and Arvind Lifestyle Brands Limited will receive a lumpsum consideration of Rs. 151.3 crores, subject to working capital adjustments.

Source : Equity Bulls

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