New Delhi: Hindustan Infralog, joint venture between DP World and the National Investment and Infrastructure Fund (NIIF), said on Sunday that it has bought 90% stake in logistics firm Continental Warehousing.
“Hindustan Infralog Private Limited (HIPL)... announces the acquisition of a 90 per cent stake in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL)," a press statement said.
The purchase consideration is below 5% of DP World’s net asset value as of FY2017 and it is the first investment of HIPL, it said. HIPL is the recently created investment vehicle between DP World and NIIF to invest up to $3 billion in ports, logistics and related sectors.
CWCNSL’s founders, the Reddy family, will retain the remaining 10% shareholding and stay involved in the business operations. “We are delighted to start our recent partnership with NIIF with this strategic acquisition to develop logistics and warehousing solutions to support India’s growing economy and trade," DP World Group chairman and chief executive officer (CEO) Sultan Ahmed Bin Sulayem said.
The strategic partnership with Hindustan Infralog and its parent DP World will have huge potential for logistics infrastructure in India and will enable CWCNSL to enhance its end-to-end value-added services to customers, CWCNSL founder Adi Keshav Reddy said.