Tanglin Retail Realty Developments Pvt. Ltd acquires majority control of Sical Logistics

Coffee Day Resorts Pvt Ltd’s unit, Tanglin Retail Realty Development Ltd Tuesday reported it had acquired majority control of Sical Logistics from its promoter Ashwin C. Muthiah. Under the takeover agreement of the majority stake, Sical Logistics is to give 16,08,0010 shares to Tanglin Retail Realty on preferential basis at Rs.76 per share.

That will be for a sum consideration of Rs.122 crore. Tanglin will have to come out with an open offer as this deal will end up Tanglin's holding in Sical at over 15 per cent. Previously, Tanglin had already acquired, via a block deal, around 39, 52,168 shares for Rs.31.41 crore at Rs.79.50 per share in Sical on the 12th of November.

Tanglin’s deal comes just two days after IDFC PE II quit the firm. IDFC had invested Rs.110 crore in Sical Logistics some three years ago. However, on Thursday, it sold its 52.50 lakh shares (13.28 per cent) for around Rs.46 crore. The shares were bought by Jupiter Capital.

Tanglin Retail Realty Developments is a wholly owned subsidiary of Tanglin Developments Ltd (TDL). Tanglin Retail Realty Developments was formed in back in 2007 to buy land to develop Coffee Day outlets. TDL, in turn, is a wholly owned subsidiary of Coffee Day Resorts Pvt Ltd (formerly, Coffee Day Holding Company Pvt Ltd).

The main source of income of TDL is lease rentals that it gets from Amalgamated Bean & Coffee Trading Company Ltd (ABCTCL). Sical provides integrated solutions for offshore logistics and multi-modal logistics services for bulk and containerized cargo. Sical handles around 26 MT of bulk cargo and 500,000 standard cargo containers a year.

Sical’s delivery network includes an exclusive walk-in berth at Chennai port for ships carrying bulk cargo; a container terminal at Tuticorin port; 225,000 sq. ft of storage across 17 warehouses; owned and regularly contracted fleet of more than 1,000 transport vehicles and container freight stations at three locations across India.

Sical will also be beneficial for in-house supply chain requirements of the diversified group with interests ranging across production and export of coffee, hotel properties and furniture. It currently relies on multiple service providers for its supply chain requirements.

At the same time, Sical divested its non-core businesses - palm oil, refractory, auto, drums, agri-bio products, specialty chemicals and flexible shafts - to position itself as a pure play integrated logistics provider.

16 Nov 2010.