Mumbai Capital

Forbes & Co sells CFS, logistics

Forbes & Company Ltd, part of the Shapoorji Pallonji Group, has decided to exit the container freight stations (CFS) and logistics business by selling the units to subsidiaries of Transworld Group Singapore for Rs 93.5 crore.

“Under the current economic situation and industry outlook, the board deemed a slump sale as the most appropriate method for exit and has accordingly granted approval to the company to sell, transfer, dispose of its two container freight stations located at Veshvi and Mundra to TG Terminals Private Ltd and its logistics business to Transworld Global Logistics Solutions (India) Pvt Ltd,” Forbes & Company said in a filing with the stock exchanges. Both the acquiring companies are part of Transworld Group Singapore, which has ambitious plans in India. Forbes & Company has agreed to sell its two businesses as a going concern along with assets and liabilities. There will be no change in the shareholding of the company as part of the proposed transaction, it said.

The company has signed definitive agreements for Mundra CFS and Vashvi CFS and the term sheet for the logistics business. The definitive agreement for the logistics business is expected to be signed in February 2016 and the proposed transaction is likely to be completed in the first quarter of 2016-17. “The completion of the proposed transaction is subject to execution of the definitive agreement, fulfilment of various conditions precedent, including but not limited to obtaining various government and other approvals,” the company said.

Forbes & Company said the aggregate turnover of the CFS and logistics undertaking was Rs 124.28 crore for the year 2014-15, constituting 43 per cent of the revenues on standalone basis and three per cent of the revenues on consolidated basis. The segment net worth contributed by the CFS and logistics business was Rs 2.75 crore in 2014-15, the company said. After the announcement of the deal, Forbes & Company’s shares came under selling pressure at the bourse and the stock closed at Rs 1621.75 down 9.22 per cent on the BSE.

Forbes & Company has agreed to sell its two businesses as a going concern along with assets, liabilities

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Printable version | Nov 27, 2021 12:59:46 PM |

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