Dubai-based port operator DP World and Australia’s infrastructure-focused Macquarie Group are looking to acquire a controlling stake in Warburg Pincus-backed Continental Warehousing Corporation (Nhava Sheva) Ltd, a financially daily reported.
Citing four people aware of development, The Economic Times said that DP World is in talks with US private equity giant Warburg Pincus, which owns a 40.4% stake in the logistics company, besides Abraaj Capital and International Finance Corporation, which together hold another 20%.
Continental Warehousing Corporation, the flagship company of Chennai-based NDR Group, is valued at Rs 4,000-4,500 crore ($620-700 million), the report said, adding that the deal is expected to be concluded by the end of the fiscal year.
One of the largest companies in the Indian logistics sector, Continental Warehousing owns and operates cargo handling facilities such as container freight stations and inland cargo depots. It also provides express cargo and third-party logistics services.
Last December, the company had received approval from capital markets regulator SEBI to float an initial public offering.
“A strategic sale will give the investors a bigger payday compared to an IPO. The promoters may stay on for a bit before exiting completely. Much of that will play out depending on who finally closes in on the transaction,” the report cited one person as saying.
Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is in advanced talks with Bengaluru-based Prestige Group to acquire a significant minority stake in its commercial real estate assets.
According to The Economic Times, Prestige Estates Projects Ltd is demerging its office assets and commercial real estate into a separate entity. CDPQ may invest $200 million (Rs 1,284 crore) for a minority stake in the demerged entity, the report added.