Japan-based logistic company Nippon Express Co Ltd is planning to buy stake of about 43% in TVS Logistics Services Ltd from existing private equity (PE) investors KKR and Co Lp and Goldman Sachs Group Inc, as per reports.
TVS Logistics which has planned to raise Rs.800-1,000 crore through an IPO in 2016 at a valuation of Rs.3,500 crore has been delayed. Beside Nippon other global PE funds are also interested in TVS Logistics.
KKR and Goldman Sachs own a combined 43% stake in TVS Logistics. Tata Opportunities Fund holds about a 7% stake in the logistics company and T.V. Sundram Iyengar and Sons and the promoters the rest. Launched as a division of T.V. Sundram Iyengar and Sons two decades ago, TVS Logistics became a subsidiary of the group in December 2004. In 2008, Goldman Sachs picked up a minority stake in TVS Logistics for Rs.100 crore. Four years later, KKR and Goldman jointly invested Rs.242 crore for an undisclosed stake.
The deal size is expected to be Rs.1,670 crore, valuing TVS Logistics at Rs.3,800 crore, as per reports.
Nippon Express is a global logistic provider providing services through diverse logistics modes, integrating land, air, and marine transport.
