Some of the business undertakings of Sical Logistics, the company that Late VG Sidharth had floated as part of his Coffee Day empire, are up for sale. Saddled with debt, Coffee Day Group has sought shareholder’s nod to sell multiple businesses to pare down debt.
Reports suggest that the main logistics business may be continued and will get out of all other interests it has invested in.
Coffee Day Group had acquired Sical Logistics in September 2011. Sical is an integrated logistics solution provider for bulk and containerised cargo in India.
The various options being put forth in front of the shareholders includes one in which the company may first consolidate the holdings in different entities it has invested by buying small holdings by other stakeholders and then sell them in one block to a suitable buyer. This is understandable since on many occasions, the buyers don’t want to deal with multiple parties and would want to buy a company by acquiring the stakes from one owner. It becomes easier to sell in such situations.
The company’s communication to its shareholders states, "Such sale shall be for a price which shall be based on valuation and the same may be either through strategic sale or slump sale as would be found advantageous to the company whereby the stakeholders’ interests would be taken sufficient care of".
The resolution will be voted on by the shareholders through postal ballot or electronic voting. Once the shareholder’s approval is obtained the company can go ahead and complete the transactions and inform the BSE. Sical Logistics is yet to identify the buyers but apparently the process is on.