 "Cholamandalam Investment to acquire majority stake in freight data solutions provider White Data Systems")
In a regulatory filing today, the company said that its Board of Directors approved a proposal to invest up to a sum not exceeding Rs 8 crore in equity shares of White Data Systems India in one or more tranches subject to satisfactory completion of due diligence and documentation. The exact number of shares and the price per share will be arrived at in due course, it said.
White Data is in the business of providing freight data solutions, which offers a holistic and integrated approach to freight data solutions, encompassing technology certification and financial offerings, it said. According to White Data, it offers a disruptive logistics technology and process solutions provider to increase truck asset utilization and reduce overall transaction costs.
"The investment will result in the company holding up to 65 per cent of the equity capital of White Data, making the latter a subsidiary of the company. The investment is expected to leverage synergies for Chola and its commercial vehicle customers by way of improved freight utilisation and income generation," said the company. The acquisition will provide synergies for commercial vehicle customers of the company by providing increased earnings for its customers besides providing opportunities for freight funding, it added.
Acquisition is proposed to be made in the current financial year 2015-16 in one or more tranches.
White Data is incorporated on April 7, 2015 and promoted by Vellesh Narayanan, who has over 20 years of experience in technology marketing and M&A in US with Wind River and Vellayan Lakshmanan, an electrical engineer with over 25 years of experience in technology, manufacturing and industrial distribution. The road transport industry provides an opportunity for introduction of solutions enabled by technological back end and White Data is intending to use this opportunity, it said.