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| Exchange Disseminated Time | Celebrity Fashions Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 03, 2009 have accorded their in principle approval for the proposal of separating the various divisions of the Company into separate Companies. The reasons for separating the various divisions into separate Companies are as follows :
1. To give greater focus to the core business of each divisions and to strengthen competencies.
2. To raise further funds at a later date for growth of the respective businesses.
3. To facilitate more transparent benchmarking with its peers.
4. Dedicated managerial, technical and marketing resources.
5. Different risk and reward for domestic and export market.
6. Different product / branding for domestic and export market.
7. To maximize the enterprise value.
Further the Company has informed that, the Company has appointed PricewaterhouseCoopers Pvt. Ltd., Bangalore and SBI Capital Markets Ltd., Mumbai to advise the Company with regard to the structure of the proposed separation to maximize the enterprise value.
Further the Company has informed that, the Board of Directors will decide the mode and structure of separating divisions into separate Companies after considering the taxation and other regulatory aspects and approvals required for aforesaid separation. |
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