New Delhi: The Competition Commission on Tuesday said it has approved Nippon Express’ acquisition of 22 per cent stake in Future Group’s logistics arm Future Supply Chain SolutionsNSE -0.82 % Ltd.
Future Supply Chain Solutions in September said that Japan-based Nippon Express Co will acquire 22 per cent stake through a combination of primary issuance and secondary purchase from an existing investor.
The Competition Commission of India (CCI) in a tweet said it “approves acquisition by Nippon Express (South Asia & Oceania) Pte. Ltd. of approximately 22% of the total issued and paid up share capital of the Future Supply Chain Solutions Limited.”
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 had said in a regulatory filing.
Further, Nippon Express had informed FSC that it had 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, it added.
Both these transactions will result in Nippon Express acquiring a 22 per cent stake in FSC (on a post money, fully diluted basis), FSC had said.
Nippon Express will also have representation on FSC’s Board of Directors, which will further strengthen its Board through their strategic direction.
[“source=economictimes”]
