Old Lane Mauritius IV Ltd, a vehicle of Old Lane Opportunities Funds, has invested $26 million (Rs107 crore) for a 26% stake in a new unit of Chennai-based logistics firm Sical Logistics Ltd.
Sical Infra Assets Ltd has been formed to park the company’s asset-heavy, capital-intensive, longer gestation infrastructure-based business such as the logistics hub at Nagpur, the iron ore terminal at Ennore port, a container rail project, Sical Distriparks and the container terminals at Tuticorn and Chennai ports.
The Old Lane investment will be subject to approval by the Foreign Investment Promotion Board.
The decision to segregate the short-cycle service oriented business from the longer duration build, operate and transfer type assets was to crystallize the value of investments made by Sical into its special purpose vehicles and then invite equity participation as was done in the case of the Old Lane investment.
Sical Logistics would in future look after only the bulk logistics business of the group as well as its services business such as stevedoring, ship chartering, shipping agency, trucking, warehousing and offshore logistics. Sical Logistics also plans to list its new subsidiary on the stock exchanges to raise funds to finance the company’s growing infrastructure business, a company spokesperson said.
Sical Logistics is also in discussions with a some Indian and overseas freight forwarding firms for a possible acquisition with an investment of around Rs100 crore, the spokesperson added. Further details were not available.