Vardhman to knit thread businesses with group co

New Delhi, Feb 28 (UNI) Vardhman Textiles Ltd today announced plans to merge its sewing thread businesses and group firm Vardhman Threads Ltd into one subsidiary, at a cost of Rs 260 crore.

The proposal includes vesting of the sewing thread business, including thread units at Hoshiarpur and Ludhiana in Punjab, Perundurai in Tamil Nadu, alongwith the spinning unit at Hoshiarpur, in the company's subsidiary, Vardhman Yarns&Threads Ltd (VYTL).

The cost has been arrived based on the valuation done by ICICI Securities Ltd.

The plan also envisages merger of the threads undertaking of Vardhman Threads Ltd (VTL) with VYTL.

ICICI Securities has also suggested a swap ratio of one share of Vardhaman Textiles for every two shares of VTL.

The scheme is subject to the requisite approval of the shareholders and creditors of the company, VTL and VYTL, High Court of Punjab and Haryana at Chandigarh and other authorities.

The company's Board of Directors have accorded their approvals to both the schemes.

UNI