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.
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