Thursday Mar 26, 2026
Thursday Mar 26, 2026
Thursday, 26 March 2026 00:23 - - {{hitsCtrl.values.hits}}
Hela Apparel Holdings PLC has sought shareholder approval to proceed with the sale of key subsidiaries to a strategic investor for a combined consideration of up to $ 17 million, as part of an ongoing debt restructuring and liquidity improvement effort.
In a circular issued to shareholders, the company said it has received an offer to sell 100% of its shares in Hela Clothing Ltd., for $ 9 million. The consideration is to be paid in two instalments, with $ 4 million payable at completion and the remaining $ 5 million within three months thereafter.
Hela Clothing, a fully owned subsidiary, reported net assets of negative $ 15.8 million as at 31 January 2026. The transaction remains subject to regulatory and corporate approvals, including those of lenders and shareholders.
Separately, the company said the same investor has indicated its intention to acquire up to 100% of shares in Hela Brands Ltd., (Mauritius) for a total consideration of $ 8 million. Of this, $ 6 million is to be paid at completion, with the balance $ 2 million structured as an earn-out.
The earn-out component includes $ 500,000 contingent on the brands business achieving an EBITDA of $ 500,000 for the financial year ending 2026/27, and $ 1.5 million linked to the realisation of inventory at the time of completion.
The company noted that shareholders had earlier approved the sale of up to 65% of Hela Brands for $ 12 million at an Extraordinary General Meeting held on 3 February, but the investor has since revised its proposal to acquire up to full ownership under a different valuation and structure.
Hela Apparel stated that proceeds from the proposed transactions will be utilised to partly settle payments due to creditors of certain subsidiaries, with funds to be channelled primarily through equity infusions into those entities.
The transactions are classified as a major transaction under Section 185 of the Companies Act and therefore require shareholder approval by special resolution.
An Extraordinary General Meeting has been scheduled for 3 April to seek approval for the disposal of 100% of Hela Clothing and up to 100% of Hela Brands to the investor.
The company said it will notify shareholders upon completion of the proposed transactions.
The share price of Hela Apparel ended Rs. 0.10 up yesterday at Rs. 2.90. The company reported net liabilities per share of Rs. 11.39 at Group level as of 31 December 2025, reporting net assets per share of Rs. 4.89 at company level.
