Shreyas Shipping buys out remaining 51% in Lanka firm Haytrans

Shreyas Shipping buys out remaining 51% in Lanka firm Haytrans
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First Published: Wed, Sep 05 2007. 12 19 AM IST
Updated: Wed, Sep 05 2007. 12 19 AM IST
Mumbai: Local shipping company Shreyas Shipping & Logistics Ltd has acquired the 51% stake it didn’t previously own in Sri Lankan transportation and freight forwarding company Haytrans Ltd for an undisclosed amount, giving the parent Transworld Group full ownership of the assets. That’s according to a person familiar with a transaction, who asked not to be named because of the early stage of the transaction.
Shreyas picked up the 51% from the promoters, Hayleys Group of Sri Lanka. The remainder was with Shreyas’ parent Transworld.
Haytrans chief executive officer Shehan Paranavitane said the “demerger” has gone through but declined further details. “We are continuously looking at organic as well as inorganic expansion in the logistics space,” said Anil Devli, executive director, Shreyas. He declined to comment further.
A person familiar with the development, who did not wish to be identified, said consulting firm PricewaterhouseCoopers carried out the valuation for Haytrans.
Shreyas is a private sector container feeder operator, which runs ships on shorter routes linking various Indian ports to other larger ports nearby ports such as Colombo, Singapore and Dubai.
Due to depth restrictions, Indian ports cannot accommodate large container ships. As a result, almost all mainline operators depend on feeder operators such as Shreyas to take their goods to larger ports.
Haytrans has a presence in international freight forwarding with a worldwide network of about 20 offices. The company also has a presence in sea freight and customs house brokerage, besides warehousing and distribution.
This acquisition would give Shreyas a ready-made clients list apart from allowing it to spread its wings to international locations including China and Russia.
“Shipping companies acquiring freight forwarding companies could be seen in the context of backward or forward integration to remain competitive in the logistics space,” said Atul Kulkarni, senior manager, consulting, Deloitte Touche Tohmatsu India, a consulting firm.
“Moreover, this could be seen as spreading the risk into various verticals of logisticsas margins may come under pressure owing to intense competition.” The share price of Shreyas on the Bombay Stock Exchange fell by 1.79% toRs90.55 on Tuesday.
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First Published: Wed, Sep 05 2007. 12 19 AM IST
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