Textured Jersey plans to acquire an operating Fabric Mill
Textured Jersey Lanka PLC says, it has decided to acquire an operating Fabric Mill within the South Asian Subcontinent, by holding back its earlier plans to expand the existing facility in the Avissawella BOI Zone.
Fabric firm says, this decision was taken, after considering the changes that have taken place in the global and local macro-economic environment, immediately after the listing of the firm in July 2011.
Accordingly, the Company is planning to utilize the funds raised from the IPO for the planned acquisition.
In a stock market filing issued, the company revealed that evaluations with regard to the acquisitions are currently ongoing, but a time line to complete the process is not yet finalized.
Textured Jersey believes, acquiring an operating fabric mill would give faster results than investing in an internal expansion.
However, the firm says, a small portion of the funds raised through the IPO has been already invested to address certain bottlenecks within the existing production facility, which has helped increase capacity and improve efficiency.
Meanwhile, the Company is also looking to introduce alternative energy sources to replace the high cost energy sources, which puts pressure on its production cost.
The Fabric Maker during last year raised Rs. 1.2 billion via its IPO, offering 80 million shares, each priced at Rs. 15.
http://www.news360.lk/business-finance/sri-lanka-textured-jersey-plans-to-acquire-an-operating-fabric-mill-8821
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