Japan’s leading global logistics company, Nippon Express, is all set to buy a 22% stake in Future Supply Chain Solutions Ltd. (FSC), the logistics arm of the Future Group.
The acquisition will be done through a combination of primary issuance of shares and secondary purchase of shares costing around INR 640 crores.
As per the deal, Future Supply Chain Solutions Ltd will issue 37,89,350 shares to Nippon Express at a price of INR 664 per share, 22% premium to the current market price.
Commenting on their partnership with Nippon Express, Mayur Toshniwal, Managing Director, FSC said, “We welcome Nippon Express, a highly respected logistics player globally, into the FSC family and are excited about the potential of this strategic partnership in creating a best in class supply chain service offering.”
This is the 4th initiative in the past 12 months by the CEO of Future Group, Kishore Biyani to raise fund. A cumulative amount of INR 7450 crores is infused through these initiatives.
Through the primary issue, Nippon Express will hold 8.6% stake on a fully diluted basis while FSC will raise around INR 252 crore for funding its near-term growth plans.
In addition, Nippon Express has also informed FSC that they have entered into a share purchase agreement with institutional shareholder(s) of FSC. With this, Nippon Express will acquire 58,63,475 shares representing 14.6% of existing share capital and an overall stake of 22% in FSC (on a post-money, fully diluted basis).
Toshniwal further added, “Through this partnership, Nippon Express and FSC are well poised to derive significant synergies given their complementary skill sets and services offering, and gain a deeper foothold in the large and growing Indian logistics sector.”
An Extraordinary General Meeting will be entertained on October 19, 2019, at Mumbai for obtaining the approval from the shareholders.