Shapoorji Pallonji Group firm Forbes & Co Ltd has decided to sell its two container freight stations and logistics business to Transworld Group Singapore for an enterprise value of not less than Rs 93.5 crore (about $14 million).
Forbes & Co said in a stock market disclosure it will sell the container freight stations at Veshvi, Maharashtra, and Mundra, Gujarat, and its logistics business to TG Terminals Pvt Ltd and Transworld Global Logistics Solutions (India) Pvt Ltd.
It said its board decided to exit the business on a slump sale basis keeping in mind the current economic situation and industry outlook. It didn’t elaborate.
The company has signed definitive agreements for the Mundra and Veshvi container freight stations and a term sheet for the logistics business. Definitive agreements for the logistics business is likely to be signed by next month.
The proposed transaction is subject fulfilment of certain conditions, including but not limited to obtaining of various government and other approvals.
For 2014-15, the aggregate turnover of the container freight stations and logistics business was Rs 124.28 crore. This accounted for 3 per cent of the company’s consolidated revenue.
There will be no change in the shareholding of the company as part of the proposed transaction. As of September 30, 2015, Shapoorji Pallonji & Co Ltd owned a 72.56 per cent stake in Forbes & Co.
Forbes & Co, formerly known as Forbes Gokak Ltd, provides engineering, shipping and logistics and transaction management solutions.
Transworld owns and operates ships and container freight stations, among others. It also offers common feeder services. The company has business operations in South, Southeast and East Asia with headquarters in Singapore.