In a regulatory filing made after market hours on Tuesday, the company said that the board of directors had approved entering into memorandum of understanding (MOU) with GPX India (GPX) and Equinix India (Equinix) for sale of approximately 3.804 acre of land at Chandivali for a consideration of Rs 200 crore.

The MOU is terminable at the option of GPX. The agreement for sale is expected to be executed by 31 January 2021 and the completion of the proposed transaction subject to due diligence, execution of definitive documents, fulfillment of various condition precedents, is expected to be completed in March 2021.

GPX and Equinix are not related parties to the promoters/promoter group/group companies of the company and the proposed transaction is not a related party transaction,” Forbes & Company said in a statement.

Forbes & Company is mainly engaged in the business of manufacturing and trading of engineering products, real estate development projects and leasing of premises.

The company reported a consolidated net loss of Rs 4.87 crore in Q2 FY21 as against a net loss of Rs 164.99 crore in Q2 FY20. Net sales during the quarter declined by 7.4% YoY to Rs 672.35 crore.

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The Board of Forbes & Company at its meeting held on 22 December 2020 has approved entering into Memorandum of Understanding (MOU) withGPX India (GPX) and Equinix India (Equinix) (upon Equinix exercising its right of substitution/step in) (together the 'Purchaser') forsale of approximately 3.804 acres of land at Chandivali for a consideration of Rs. 200 crores (Proposed Transaction).

The MOU is terminable at the option of GPX. The Agreement for Sale is expected to be executed by 31 January 2021 and the completion of the Proposed Transaction subject to due diligence, execution of definitive documents, fulfilment of various condition precedents, is expected to be completed in March' 2021.

GPX and Equinix are not related parties to the Promoters/Promoter Group/Group Companies of the Company and the Proposed Transaction is not a related party transaction. There will be no change in shareholding of the Company as part of the Proposed Transaction.

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Net Loss of Forbes & Company reported to Rs 4.87 crore in the quarter ended September 2020 as against net loss of Rs 164.99 crore during the previous quarter ended September 2019. Sales declined 7.38% to Rs 672.35 crore in the quarter ended September 2020 as against Rs 725.93 crore during the previous quarter ended September 2019.

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Forbes & Company has received revision in credit ratings from CARE Ratings as follows -

Long term bank facilities - CARE BB+; Negative (Revised from CARE A-; and removed from credit watch with negative implications)

Short term non fund based facilities - CARE A4+ (Revised from CARE A2+ and removed from credit watch with negative implications)

Proposed NCDs - CARE BB+; Negative (Revised from CARE A- and removed from credit watch with negative implications)

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