Bannari Amman To Sell Textile Assets To SP Apparels

In a stock exchange filing, Bannari Amman Spinning Mills Ltd (BASML) has said that SP Apparels Ltd has expressed interest in buying a few of its textile assets.

Bannari Amman will utilise the funds received from the sales of these assets to reduce its borrowings. However, the company has not disclosed the transaction value

The sale includes Bannari Amman subsidiary Young Brand Apparel Private Ltd, another sale of its garment unit located at Palladam Hi-Tech Weaving Park and also sale of 6.43 acres of land with building in Perundurai.

Young Brand Apparels Pvt Ltd (YBAPL) is a manufacturing and exporting company and is a joint venture between Jacob Industries, USA, Intimark of Mexico, and Bannari Amman Spinning Mills.

The filing also disclosed that SV Arumugam, Managing Director of BASML, is further negotiating the proposal with SP Apparels.

The transaction, when finalised, is subject to necessary statutory, regulatory, and other approvals.