Wadia group’s textile firm Bombay Dyeing & Manufacturing Company Ltd (BDMC) said on Friday it has canceled a deal it had signed with Oasis Procon Pvt Ltd for the sale of a textiles processing unit in Maharashtra.
As per the term sheet, Delhi-based textiles manufacturer Oasis was required to complete the proposed transaction by July 31. However, it failed to do so.
Bombay Dyeing had agreed to sell the unit at Ranjangaon to Oasis for Rs 230 crore ($36.2 million) in May this year.
According to the terms of the deal, the company had decided not to export bed linen or bed linen fabric to the US for five years from the closing date.
The deal was part of the company's plan to raise funds to repay existing loans, enhance working capital and for other general business purposes.
Bombay Dyeing will now negotiate with other potential buyers for the unit and seek approval from its shareholders at the appropriate time, it said in a stock-exchange filing.
This will, however, not have any impact on the company’s existing retail business Home & You.
Bombay Dyeing offers linens, towels, home furnishings, leisure clothing, kids wear and other products. It was earlier the flagship firm of the Wadias, but the group has now diversified into several businesses including airlines, food, chemicals, petrochemicals, plantations, light engineering and real estate.