Sical Logistics Ltd., part of Coffee Day group, has sought the approval of its shareholders to sell its and its subsidiaries’ assets to pay off debts and for running the major businesses of the company in a smooth manner. A decision to this effect was taken at the company’s board meeting held on August 2, 2019.
In a notice to its shareholders, the company said in order to find suitable buyers, the subject of sell, dispose off or hive off the business undertakings is required to be approved by the shareholders.
The company is currently looking to sell its various business units as well the shareholdings held in the subsidiaries either as such or consolidating by purchasing the shares held by any other investors in the subsidiaries.
Such sale shall be for a price which shall be based on valuation and the same may be either through strategic sale or slump sale as would be found advantageous to the company whereby the stakeholders’ interests would be taken sufficient care of. Such proceeds would be utilised to pay off the debts, the note said.
The company was in the process of identifying suitable buyers.
Considering the present scenario, it was also proposed to increase investment limits, extend loans, or give guarantees or provide securities in connection with loans to persons or bodies corporates up to an amount of ₹200 crore for which a proposal was placed before the shareholders.
The company had been facing liquidity challenges after the demise of Coffee Day promoter V. G. Siddhartha.
