Textile Firm GHCL Courting UK Funds Too

Some new suitors may have emerged for Ahmedabad-based GHCL, which is into soda ash, textiles and home textile retailing business. Among those who are in the race for a controlling stake in Sanjay Dalmia led GHCL include a few UK-based companies. One of the suitors has offered $175 million for a 20 per cent stake in the company, which would value the firm at $875 million or Rs 3,675 crore or Rs 365 per share, six times its current price.The report cites a source close to Mumbai-based investment advisor, Sanghi Advisors, saying that one of its UK-based client is engaged in negotiations for determining the control premium for eventual transfer of the controlling stake. The deal may be wrapped up by the middle of next month. Once this deal is through, GHCL may opt for restructuring of its two businesses – soda ash and home textiles – by creating two separate entities.GHCL had earlier announced that it would hive off its home textile retail and B2B businesses into two separate firms while retaining soda ash and home textile manufacturing business in the parent firm.This report comes at a time when Dubai-based diversified group Al Rostamani has already made an expression of interest to acquire upto 25 per cent stake in GHCL. This could be through a mix of 15 per cent stake sale by the promoters followed by an open offer which could take its stake to 35 per cent if fully subscribed.Two other British investors have also shown interest in GHCL’s home textiles and retail business which is looking to expand in UK besides expansion in Eastern Europe and South East Asia. GHCL is present in the UK retail home textiles market through Rosebys, which it acquired two years back.