Filatex Fashions to invest in equity shares of this firm from Sri Lanka

Hyderabad-based Filatex Fashions Ltd., engaged in the manufacture and sale of knitted socks manufacturing has informed the exchange that it intends/proposes to acquire 51% of the Equity Share Capital in Isabella (Pvt.) Limited, Srilanka for a consideration of USD 7.55 Mn approximately. 

"In this regard, the Company is in the process of reaching certain preliminary understandings for the proposed Acquisition/ Subscription of Shares of Isabella (Pvt.) Limited, which is into the business of Manufacturing Apparels and related Products in Srilanka. This is to inform the Exchange that the Company intends/proposes to acquire 51% of the Equity Share Capital in Isabella (Pvt.) Limited, Srilanka for a consideration of USD 7.55 Mn approximately. In this regard, the Company is in the process of reaching certain preliminary understandings for the proposed Acquisition/ Subscription of Shares of Isabella (Pvt.) Limited, which is into the business of Manufacturing Apparels and related Products in Srilanka," Filatex Fashions Limited said in BSE filing.

"The Parties hereto in-principle reached certain understandings to enter into the following Agreements on satisfactory conclusion of Due Diligence and in the event Parties are able to mutually agree on the final terms and conditions:

a) Share Subscription and Share Purchase Agreement between Isabella and the Company.

b) Shareholder's agreement between Isabella, its Shareholder and the Company," the filing statement added.

The company says it is on an expansion spree and is looking for both organic and inorganic growth opportunities, more particularly in other developing countries including the Indian subcontinent and Africa.