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| Exchange Disseminated Time 15/09/2016 15:47:56 | Tube Investments of India Ltd has informed BSE that the Company has entered into a Joint Venture Agreement with Absolute Speciality Foods Chennai Private Limited, Chennai (“Absolute”) to carry on the business of bicycle theme based restaurant with retail outlet for bicycles at Kotturpuram, Chennai and further to establish more such theme based restaurants with retail outlets for bicycles at locations to be identified. A new company viz., Tl Absolute Concepts Private Limited (“JV Company”) has been formed to be the joint venture vehicle wherein the Company and Absolute will hold equity shares in the ratio of 50%:50%.
In this connection, the Board of Directors of the Company, at its meeting held on September 15, 2016 has approved the entering into of a Joint Venture Agreement with Absolute and the investment by the Company of a sum not exceeding Rs. 10 Cr, in one or more tranches, in the equity share capital of the JV Company. The proposed initial investment will be of the order of Rs. 15 Cr., contributed equally by the two joint venture partners. The existing restaurant business of Absolute will be transferred to the JV Company and the bicycle theme based restaurant will be operated under the brand and trade name, “Ciclo Cafe”. |
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