Photo: Ramesh Pathania/Mint
Photo: Ramesh Pathania/Mint

Nippon Express gets CCI nod to buy 22% stake in Future Supply

  • Nippon Express will acquire the said stake in Future Supply for 641 crore
  • Nippon Express will also have a right of first refusal (RoFR) on future stake dilution by Future Supply

Competition Commission of India on Tuesday approved the proposed acquisition of 22% stake in Future Supply Chain Solutions Ltd by Nippon Express (south Asia & Oceania) Pte Ltd. Nippon Express will acquire the said stake in Future Supply for 641 crore, executing its plans to tap the rapidly growing Indian logistics market.

“The proposed combination pertains to the acquisition by Nippon Express of approximately 22% of the total issued and paid up share capital of Future Supply on a fully diluted basis," according to a press release.

As part of the transaction, Singapore-based Nippon Express bought 14.6% stake of the existing share capital held by SSG Capital Management in Future Supply. Besides this, Kishore Biyani-led Future Supply will issue 37,89,350 new shares to Nippon Express at a price of 664 per share.

Through this primary issue, Nippon Express will hold 8.6% stake on a fully diluted basis and Future Supply will raise around 252 crore for funding its near-term growth plans.

Both the transactions will result in Nippon Express owning a 22% stake in Future Supply, on a post money, fully diluted basis, entitling it to hold a board seat in Future Supply. Nippon Express will also have a right of first refusal (RoFR) on future stake dilution by Future Supply.

The Singapore-based company first entered into the Indian market in 2007 and currently focuses on international freight forwarding of cargo arriving in and departing from India.

Nippon Express is a wholly owned subsidiary of Japan’s Nippon Express Co. Ltd, with operations across south Asian and Oceania regions.

Future Group-owned Future Supply is a third-party supply chain and logistics service provider that offers automated and IT-enabled warehousing, distribution and other logistics solutions.

Shares of Future Supply ended 6.15% higher at 501.40 on the BSE today.

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