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Eredene Capital's arm buys 8.22% stake in OSL

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Press Trust of India Bangalore

UK-based Eredene Capital Plc announced today that its wholly-owned subsidiary has invested $11.1 million for a 8.22 per cent stake in OSL, a leading Indian port operations and marine services company.

The investment would be made using the Eredene Group's existing cash reserves, the company said in a statement.

OSL, a privately-owned Hyderabad-based company founded in 1995, is profitable and dividend paying. It generated revenue of Pound 26.4 million, net profits of Pound 5.2 million and reported net assets of Pound 27.4 million in the year ended 31 March 2009, said the company in a press release.

Eredene is buying the stake from Swiss Technology Venture Capital Fund, which is nearing the end of its fund life.

 

OSL owns and manages a fleet of 82 vessels, comprising 59 tugs, five dredgers, five barges, five mooring boats and eight pilot launches.

It services 18 ports across India and also has three joint ventures in India with the Port of Singapore Authority (Marine). The OSL Group also has a joint venture operation in Oman.

OSL provides the full range of support services to incoming and departing ships, such as pilotage, anchoring and berthing, and also undertakes dredging contracts.

The World Bank's International Finance Corporation (IFC) is an investor in OSL, having first provided project financing for the OSL Group in 2003 followed by its direct investment in preference shares in OSL in June 2009.

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First Published: Jul 08 2010 | 8:04 PM IST

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