CDPQ’s proposed purchase of minority stake in TVS Logistics gets CCI nod1 min read . Updated: 31 Dec 2016, 12:11 AM IST
CDPQ's acquisition of the minority stake in TVS Logistics is worth Rs1,000 crore
New Delhi: Antitrust regulator Competition Commission of India (CCI) on Friday approved the proposed acquisition of a minority stake by Caisse de Dépôt et Placement du Québec (CDPQ), Canada’s second largest pension fund, in TVS Logistics Services Ltd. The acquisition is worth Rs1,000 crore.
“CCI approves share acquisition by CDPQ Private Equity Asia Pte. Ltd. and R. Dinesh in TVS Logistic Services Limited," the regulator posted on microblogging site Twitter.
Dinesh is TVS Logistics’ managing director.
The transaction will help present investors Goldman Sachs and KKR and Co. LP sell their stake in TVS Logistics and exit the company. CDPQ will purchase most of these shares and TVS family members will pick up the rest, Mint had reported in October.
In 2008, Goldman Sachs acquired a 21% stake in TVS Logistics for an investment of about Rs100 crore. In 2012, KKR invested Rs242.2 crore and Goldman added a second round of funding of Rs26.6 crore in TVS Logistics.
TVS Logistics is a third-party logistics services provider and has a presence in 14 countries. The company provides integrated logistics services to sectors such as automobiles, beverages, information technology, healthcare, telecom, retail, consumer goods and defence.
In a 19 October press release, CDPQ CEO Michael Sabia said, “TVS Logistics is well positioned to seize growth opportunities resulting from recent tax reforms in India and global demand for state-of-the-art logistics services. CDPQ’s strategy is to identify world-class management teams and to support them over the long term. This is precisely what we intend to do with TVS Logistics as it expands in its home market and abroad."
The CCI clearance paves the way for the transaction to move forward.