In an initial public announcement dated May 21, 2023, Transworld Holdings stated that it intended to voluntarily delist the equity shares of its Indian subsidiary, Shreyas Shipping & Logistics Ltd.
The proposed delisting from BSE and The National Stock Exchange of India has received in-principle permission, according to Shreyas Shipping & Logistics (SSL), which announced this on September 8.
Transworld Holdings (THL), the promoter, has stated its desire to purchase shares of SSL at an indicative price of INR 338, which is higher than the floor price established in accordance with delisting requirements of Rs 292. This cost is far less than the going rate of Rs 373.
In an initial public announcement dated May 21, 2023, Transworld Holdings stated that it intended to voluntarily delist the equity shares of its Indian subsidiary, Shreyas Shipping & Logistics Ltd.
In accordance with applicable Indian law, SSL may be delisted through the acquisition of equity shares of SSL if doing so would result in THL and its affiliates own at least 90% of the total equity shares issued by SSL after the post-offer shareholding period, as well as satisfying certain other applicable regulatory requirements. THL now owns 1,54,66,650 equity shares, or 70.44 percent of SSL’s paid-up equity share capital, together with its affiliates.
The board of directors accepted the proposed delisting on May 24, 2023, and SSL shareholders approved it via special resolution on July 3, 2023.
The proposed delisting is currently contingent on meeting the Minimum Tender Condition and receiving other regulatory approvals. According to the firm, if the deal goes through, the purchase of SSL’s equity shares will be made in compliance with the Delisting Regulations at a price that will be decided through the reverse book-building procedure.
“THL shall have the sole discretion to accept or reject the price discovered pursuant to the book building process including other rights and obligations in terms of the Delisting Regulations,” the statement continued.
“Transworld organizational is still working to make the organizational structure simpler. The proposed deal is completely in line with the effective strategy that has been followed for many years. While providing a reasonable exit price to minority owners, it will change the Group’s credit profile. It has the potential to radically realign our firm for the future, according to Sivaswamy Ramakrishnan, chairman of the Transworld Group, if it can be completed at a cost that meets the needs of all stakeholders.
