Sical Logistics to receive Rs. 110 crores private equity from IDFC; to hive off non-core activities

Sical Logistics Limited will receive private equity funding of around Rs. 110 crores from IDFC Private Equity from its IDFC Private Equity Fund II. The proposed investment would be through a preferential issue of equity shares. SSKI Corporate Finance was the advisor to Sical for the fund raising exercise.

Sical intends to become a pure play integrated logistics provider. It is now in the final stages of divesting its non-logistics businesses. As part of this process, Sical proposes to de-merge the non-logistics businesses comprising of trading undertakings, services undertaking and coffee plantations as per the de-merger scheme approved by the board. The ratio for issue of shares upon de-merger has been endorsed by Ernst & Young. Additionally, Sical is also hiving off some of the other non-core businesses including palm oil, refractory, auto, drums, agri-bio products, specialty chemicals and flexible shafts. Buyers have been identified and relevant due diligence exercises are currently in the last stages. It is expected that a significant portion of the hive off exercise will be completed within FY 2007.

Read more on Sical Logistics in Moneycontrol.com.

Amruth IMFL brands attract attention from Radico Khaitan, Mason & Summers’ Vangal

Radico Khaitan and serial entrepreneur Ramesh Vangal seem interested in buying some liquor assets of the South-based Amruth Group. E&Y has been mandated by the Jagdale family-owned Amruth Distilleries to find suitors for its three IMFL brands and a bottling plant in Kerala which has a valuation of around Rs. 100-150 crores.

Amruth may offload Old Port Rum, Bejois Brandy and Prestige Whisky along with its plant as part of a re-structuring exercise. E&Y has opened talks with several potential buyers in recent weeks. The three brands together sold over a million cases with net revenues of Rs. 68 crores in FY 2006. Old Port Rum is the largest amongst the three brands that sell mainly in the southern markets. Old Port Rum and Bejois Brandy hold respectable share in their respective segments with Kerala being a key market.

Radico Khaitan, the second largest domestic liquor company, has made a slew of mid-sized acquisitions in recent years including the takeover of the IMFL portfolio of Brihans Maharashtra Sugar Syndicate. Ramesh Vangal, who steered Pepsi and Seagram into the country, returned to the liquor space two years back with a start-up entity Mason & Summers. He has been on the prowl for acquisitions to strengthen the operations.

Read the article in The Economic Times.