Coffee Day arm set to gain control of SICAL Logistics

SICAL Logistics’ shareholders today gave their nod to sale of the stake in the company to Tanglin Retail Reality Developments Private Limited, a group company of Coffee Day Resorts. The approval was given at the company’s extraordinary general meeting, held at Chennai today.

Post completion of the deal, Tanglin Retail Reality’s shareholding will be 36.03 per cent, while M A Chidambaram group Group, promoters of SICAL Logistics, will hold 22.17 per cent and public will hold 41.80 per cent.

It may be noted, in November, Tanglin acquired 10 per cent in Sical Logistics for Rs 31.4 crore from Darnolly Investments one of the promoter group company through open market purchase. Further, the promoters agreed to offload 16 million shares or 36.3 per cent stake to Tanglin via a preferential allotment at Rs 76 per share, which triggered the 15 per cent open offer rule.

 

Meanwhile, Tanglin would make an open offer for acquiring a maximum of 11.7 million equity share or 20 per cent stake in Sical Logistics at Rs 79.50 per share, aggregating to Rs 93.07 crore. The offer will open on January 8 and close on January 27, 2011, pending regulatory approval. It would be interesting to see if the shareholders tender the shares in the open offer, as Sical’s shares are trading near the offer price. Shares of Sical closed at Rs 79.30 on Tuesday.

Ashwin C Muthiah, chairman, SICAL Logistics told company’s shareholders that the funds are required for FCCBs and for company’s capital expenditure and said the investor will bring value to the company.

He declined to comment further about the company’s plan to reporters at the sidelines of the EGM.