New Delhi: Arvind Fashions on Thursday said the company and its subsidiary Arvind Lifestyle Brands have each signed definitive agreements to sell clothing brand Flying Machine to its wholly-owned subsidiary Arvind Youth Brands.
Arvind Fashions said the rationale for sale is to provide more focus to Flying Machine business and to enable raising capital to allow the company to accelerate its growth.
"Arvind Fashions and Arvind Lifestyle Brands (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," Arvind Fashions said in a BSE filing.
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 company will receive lumpsum consideration of Rs 61. 9 crore from the transaction and Arvind Lifestyle Brands will receive a lumpsum consideration of Rs 151.3 crore, subject to working capital adjustments," Arvind Fashions said.
Flying Machine is engaged in the business of designing, sourcing, marketing and selling readymade apparel, footwear and other accessories. PTI
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