Transworld Holdings (THL) has taken a step forward in its plan to delist its Indian subsidiary, Shreyas Shipping & Logistics Ltd (SSL), from the Bombay Stock Exchange (BSE) and The National Stock Exchange of India. On Friday, SSL announced that it has received in-principle approval for the proposed delisting.
The process began earlier this year on May 21 when THL announced its intention to voluntarily delist the equity shares of SSL. The proposal was approved by the board of directors on May 24 and by shareholders of SSL through a special resolution on July 3.
Currently, THL along with its affiliates holds 1,54,66,650 equity shares, which aggregates to 70.44% of the paid-up equity share capital of SSL. Under Indian laws, SSL can be delisted by acquisition of equity shares if the same would result in post-offer shareholding of THL and its affiliates in SSL being at least 90% of the total equity shares issued by SSL.
The floor price for the delisting, as per regulations, stands at Rs 292 ($3.93). However, THL has indicated a willingness to acquire shares at a price of Rs 338 ($4.55), which is significantly lower than the prevailing price of Rs 373 ($5.03).
The proposed delisting is now subject to satisfaction of the 'Minimum Tender Condition' and other regulatory approvals. If consummated, the purchase of the equity shares will be carried out in accordance with the Delisting Regulations at a price to be determined through the reverse book building process.
"Transworld Group continues its efforts to simplify the group structure. This proposed transaction is fully aligned with the robust strategy pursued over the years. It will transform the Group's credit profile while offering a fair exit price to minority shareholders. Provided it can be completed at a price that balances the needs of all stakeholders, it has the potential to fundamentally reposition our business for the future," said Sivaswamy Ramakrishnan, Chairman of the Transworld Group.
SSL, a leading player in the coastal shipping sector, saw its stock trade down 2% at Rs 373 following the announcement.
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