Dubai-based Transworld Holdings plans to delist shares in Indian subsidiary Shreyas Shipping & Logistics, which owns and operates container feeder ships. Transworld Group said the delisting plan will help it secure full ownership of Shreyas Shipping & Logistics, which will provide improved operational flexibility. The price will be determined through the reverse bookbuilding mechanism set out in the SEBI Delisting Rules. Currently, Transworld Holdings together with its subsidiaries holds 154,666,650 shares totaling 70.44% of Shreyas Shipping & Logistics’ paid-up share capital.
The proposed delisting of Shreyas Shipping & Logistics will enhance its operational, financial and strategic flexibility for corporate restructuring and acquisitions while exploring new financing structures, including group financial backing. In addition, the delisting will provide Shreyas Shipping & Logistics public shareholders with an opportunity to realize secure value for their shares. After reviewing market conditions, the Company will accept the shares being offered in the offering at the minimum price specified in the Delisting Regulations.
Following its deal with DP World in 2021, Shreyas Shipping & Logistics entered into a long-term container ship charter agreement with Transworld Feeders Pvt Ltd., enabling it to participate indirectly in the growth of the coastal trade market as its charter payouts will be linked to the performance of Transworld Feeders. The master charter agreement with Unifeeder is also non-exclusive, meaning that Shreyas reserves the right to charter vessels to third parties who can offer more favorable terms to the fleet owner.
“The proposed transaction is fully in line with the robust strategy pursued over the years. It will change the group’s credit profile while offering minority shareholders a fair exit price. Provided it can be completed at a price that meets the needs of all stakeholders, it has the potential to fundamentally transform our business for the future,” said Ramesh Ramakrishnan, Chairman of Transworld Group.