The company said it was willing to accept the equity shares tendered in the offer as per the floor price determined in accordance with the Delisting Regulations.
Dubai-based Transworld Holdings Ltd said on Sunday it will delist the shares of Indian subsidiary, Shreyas Shipping & Logistics Ltd, which owns and operates container feeder ships.
The move comes close two years after global port operator DP World’s majority-owned subsidiary Unifeeder ISC FZCO acquired 100 per cent of Avana Logistek Ltd (including its subsidiary Avana Global FZCO) and Transworld Feeders Pvt Ltd (the containerised Indian coastal and EXIM feeder shipping operations of Mumbai-listed Shreyas Shipping & Logistics Ltd, excluding its container vessels and bulk ship operations).
The Transworld Group said the delisting plan will help it secure full ownership of Shreyas Shipping & Logistics, which in turn provide enhanced operational flexibility.
The price will be determined through the reverse book building mechanism set out in the Delisting Regulations of SEBI. The proposed delisting of Shreyas Shipping & Logistics will enhance its operational, financial, and strategic flexibility to undertake corporate restructurings, acquisitions, exploring new financing structures, including financial support from the Group.
The proposed delisting will provide public shareholders of Shreyas Shipping & Logistics an opportunity to realize immediate and certain value for their equity shares, the company said.
Currently, Transworld Holdings along with its affiliates holds 1,54,66,650 equity shares aggregating to 70.44 percent of the paid-up equity share capital of Shreyas Shipping & Logistics.
Further, after considering the prevailing market conditions and with a view to provide the public shareholders of Shreyas Shipping & Logistics with a fair exit price, the company said it was willing to accept the equity shares tendered in the offer as per the floor price determined in accordance with the Delisting Regulations.
“The 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 Ramesh Ramakrishnan, Chairman, Transworld Group.
Following the 2021 deal with D P World, Shreyas Shipping & Logistics, the Indian flagged vessel owning unit of Transworld Group, has struck a long-term container ship chartering arrangement with Transworld Feeders Pvt Ltd.
This was designed to help Shreyas Shipping & Logistics indirectly participate in the upside of the growth in the coastal trade market as its charter pay-outs will be performance linked to the earnings of Transworld Feeders.
The framework chartering agreement with Unifeeder is also non-exclusive, which means that Shreyas reserves the right to charter vessels to third parties who can offer terms more beneficial to the fleet owner.