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Nippon Express to Acquire 22% Stake in Future Supply Chain Solutions

Logistic News - Published on Wed, 25 Sep 2019

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Nippon Express Co Ltd acting through its subsidiary Nippon Express Pte Ltd, Japan's leading global logistics player, has agreed to acquire a 22% stake in Future Supply Chain Solutions Ltd. This transaction is a combination of primary issuance and secondary purchase from an existing Investor. As part of this transaction, FSC will issue 37,89,350 shares to Nippon Express at a price of Rs. 664 per share 22% premium to the current market price. Through this primary issue Nippon Express will hold 8.6% stake on a fully diluted basis and FSC will raise around Rs. 252 crores for funding its near-term growth plans.

Further, Nippon Express has informed FSC that they have entered into a share purchase agreement with institutional shareholder(s) of FSC to acquire 58,63,475 shares representing 14.6% of existing share capital. Both these transactions will result in Nippon Express owning a 22% stake in FSC.

Nippon Express and FSC plan to explore synergies between the two organizations. FSC and Nippon Express will jointly evaluate leveraging Nippon Express' competency in diverse sectors for the Indian market. FSC plans to leverage Nippon Express' Japanese and MNC clients for exploring new business opportunities in India, especially for 3PL and express logistics operations. Nippon Express will also have representation on FSC's Board of Directors, which will further strengthen its Board through their strategic direction.

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Posted By : Mohan Sharma on Wed, 25 Sep 2019
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