Tanglin Retail Realty Development today made an open offer to Chennai-based Sical Logistics shareholders. The company offered a price of Rs 79.50 per share which was less than today’s Sical trading price of Rs 89.80 at National Stock Exchange. The acquisition cost comes to around Rs 93.07 crore. It may be noted Tanglin was formed to develop Coffee Day outlets.
The acquisition would mark coffee baron V G Siddhartha’s entry into the logistics space and the cost of acquisition works out to about Rs 200 crore.
Tanglin Retail Reality Developments Private Limited is a group company of Coffee Day Resorts Pvt Ltd, which made this open offer to acquire a maximum of 11.7 million equity share or a 20 per cent stake in Sical, promoted by M A Chidambaram Group. The offer is slated to open on January 8 and close on January 27, 2011, pending regulatory approval, according to company’s announcement.
It may be noted, last week, Tanglin acquired 10 per cent stake in Sical Logistics for Rs 31.4 crore from Darnolly Investments one of the promoter group company in an open market transaction.
Further, the promoters agreed to offload 16 million shares or 36.3 per cent stake to Tanglin via a preferential allotment at Rs 76 per share, which triggered the 15 per cent open offer rule.
Sical Logistics, which is part of the AC Muthiah’s SPIC group, has reported a profit of Rs 9.16 crore during the quarter in the second quarter compared to Rs 2.44 crore during the same quarter last year.
Net sales for the quarter rose 19.42 per cent to Rs 151 crore.
Sical Logistics Litmited is an integrated logistics provider of bulk and container cargo. The company is also into port compound management and ship loading operation for Nissan cars at Ennore Port, besides it also manages container terminals at Chennai and Tuticorin ports in South India and iron ore terminals.