Japan-based Nippon Express Co will acquire 22 per cent stake in Kishore Biyani-led Future Group's logistics arm Future Supply Chain Solutions Ltd through a combination of primary issuance and secondary purchase from an existing investor.
As part of this transaction, Future Supply Chain Solutions Ltd (FSC) will issue 37,89,350 shares to Nippon Express at a price of Rs 664 per share (22 per cent premium to the current market price).
"Through this primary issue Nippon Express will hold 8.6 per cent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans," the company said in a regulatory filing.
Further, Nippon Express has informed FSC that they have entered into a share purchase agreement with institutional shareholder(s) of FSC to acquire 58,63,475 shares representing 14.6 per cent of existing share capital, the company said.
Both these transactions will result in Nippon Express owning a 22 per cent stake in FSC (on a post money, fully diluted basis), FSC added.
Nippon Express will also have representation on FSC Board of Directors, which will further strengthen its Board through their strategic direction.
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Nippon Express and FSC plan to explore synergies between the two organisations.
Commenting on this transaction, Mayur Toshniwal, Managing Director, FSC said, "through this partnership, Nippon Express and FSC are well poised to derive significant synergies given their complementary skill sets and services offering, and gain a deeper foothold in the large and growing Indian logistics sector."
FSC said it has convened an extraordinary general meeting on October 19, 2019 at Mumbai for obtaining the shareholder approval.
The transaction is subject to consents and approvals customary for such a transaction including shareholder approval.
Shares of Future Supply Chain Solutions settled 2.62 per cent lower at Rs 527.20 apiece on BSE.
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