An open offer will be made to the rest of the shareholders of Navkar Corporation which will cost around Rs 412.17 cr
Dev Chatterjee MUMBAI
JSW Infrastructure, the second-largest private commercial port operator in India, has acquired a 70.37 per cent stake in BSE-listed Navkar Corporation, a logistics firm, for Rs 1,012.7 crore.
As per statements by both companies, an open offer will be made to the rest of the shareholders of Navkar Corporation, as per the Sebi takeover code. The open offer will cost an additional Rs 412.17 crore.
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While Navkar shares closed at Rs 112 a share on Thursday with a rise of 1.48 per cent, JSW Infrastructure’s shares closed 2 per cent down at Rs 319 a share. Navkar operates a container freight station (CFS) and Gati Shakti Cargo Terminal at Somathane, Pavnel and two CFS at Ajivali, Panvel. The company also owns an Inland Container Depot (ICD) at Morbi, Gujarat, which is part of the multimodal logistics park (MMLP). Navkar also has a Container Train Operator Licence of Category 1 and Category 2 and has established a foothold with facilities in the Western India industrial belt of Maharashtra and Gujarat and leveraged its railway capability to extend its service network in the rest of the country.
“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,” a statement by JSW Infrastructure said.
The acquisition also marks a first step towards JSW Infrastructure’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, it said.
