- The acquisition will result in the Company’s foray into logistics and other value-added services
- Navkar has established a foothold with facilities in the Western India industrial belt across the states of Maharashtra and Gujarat and leveraged its railway capability to extend its service network to Pan India
NE BUSINESS BUREAU
MUMBAI, JUNE 27
JSW Infrastructure Limited, a part of the JSW Group and India’s second-largest private commercial port operator, on Thursday said it will acquire 70.37 per cent shareholding in Navkar Corporation for around Rs 1,012 crore, paving the way for its foray into the logistics industry.
The company has entered into a share purchase agreement with certain promoters and members of the promoter group (sellers) of Navkar Corporation (Navkar) to acquire 10,59,19,675 equity shares, constituting 70.37 per cent of Target’s total equity share capital, at a price of Rs 95.61 per share, according to a release by JSW Infrastructure Limited.
“JSW Infrastructure through its wholly owned subsidiary JSW Port Logistics has agreed to acquire 70.37 per cent shareholding held by promoters and promoter group in Navkar,” it said.
The completion of the acquisition is subject to the receipt of customary approvals required from certain regulatory bodies and the completion of identified conditions precedent.
JSW Port will discharge its payment obligations under the proposed transaction by way of cash consideration, the filing said.
Following this, the company will launch an open offer at a price of Rs 105.32 per share to buy an additional 26 per cent stake from public shareholders at a total cost of around 413 crore, the filing stated.
Navkar is listed on BSE and NSE. Its key operating facilities are:
- One Container Freight Station (CFS) and Gati Shakti Cargo Terminal at Somathane, Panvel and Two CFS at Ajivali, Panvel.
- An Inland Container Depot (ICD) at Morbi, Gujarat. The ICD is part of the Multimodal Logistics Park (MMLP).
Navkar also has a Container Train Operator License of Category 1 and Category 2. Navkar has established a foothold with facilities in the Western India industrial belt across the states of Maharashtra and Gujarat and leveraged its railway capability to extend its service network to Pan India.
The acquisition aligns with the Company’s strategy to pursue value-accretive organic and inorganic opportunities in the port and related infrastructure sector. The acquisition will result in the Company’s foray into logistics and other value-added services. It will facilitate the business to offer improved port connectivity and streamlined supply chain solutions to its customers.
The acquisition also marks a first step towards the Company’s long-term vision of building and scaling an efficient pan-India logistics network for last-mile connectivity. Further, it complements the growth strategy of increasing the Company’s share of port-related container cargo driven by India’s strong economic fundamentals.
As a result of the Proposed Transaction, the Acquirer will be required to make an open offer in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
JM Financial Limited acted as the exclusive financial advisor to the Company for this transaction.
