Winsome Yarns to sell its knitting division to a leading Middle East-based apparel firm

Winsome Yarns Ltd, a Chandigarh-based yarn manufacturing company, a part of Kolkata-based Winsome Group, to improve efficiency and ensure better financial management in May 2013 the company took up a decision to undertake an internal restructuring by selling its knitting division to a Middle East-based company for an undisclosed amount, as per a stock market disclosure.

Winsome has started the required steps to facilitate the transaction as it has received a letter of intent from a leading apparel manufacturing company with operations based out of various locations in Middle East to buy the division, it disclosed on Monday.

The company had mandated a Singapore-based investment bank to scout for buyers for the unit.

Two weeks ago, the firm said that it is in advanced stages of negotiation with two parties who intend to acquire majority stake in the knitting division of the company.

Founded in 1990, Winsome Yarns produces raw white yarn, melange yarn, dyed yarn and knitwear. It’s a small cap public listed firm.

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