The transaction is likely to be ₹1,154 crore, subject to terms detailed in the definitive agreements. The completion of the transaction remains subject to necessary regulatory and shareholders’ approvals and is expected to occur in tranches over the next 18 to 24 months, the company said.
Ganesh Benzoplast said it will sell and transfer its liquid storage tank business at terminals at Jawaharlal Nehru Port (JNP), Goa Port and Cochin Port on a slump sale basis. It will also sell its shareholding in its step-down subsidiary ILSL Rail Logistics Pvt, which is a wholly-owned subsidiary of Infrastructure Logistics System, which will operate the rail logistics business in Daund.
Ganesh Benzoplast said it will consider enhancement of shareholder value by corporate actions such as buyback as per the regulatory provisions. The company said it will utilise the proceeds from the sale to grow and expand its capacity for manufacturing of chemicals, food preservatives and lube oil addities, chemical trading and to execute higher value projects in the engineering, procurement and construction (EPC) business.
Additionally, CLPL has entered into definitive documents to engage Ganesh Benzoplast for EPC related to the expansion, construction and building of pipelines and tanks at the JNP facility, the company said. The EPC-related services are expected to generate additional revenue of around ₹240 crore over the next 18 to 24 months for the company.
“Ganesh Benzoplast has built a strong liquid storage and logistics business over several decades, and we believe Cisternina and KKR are well-positioned to support its next phase of growth,” the company’s chairman and managing director Rishi Pilani said.
Meanwhile, CLPL director Amit Saboo said KKR’s global perspective, deep expertise and strong understanding of infrastructure businesses will be invaluable as it builds Cisternina.Shares of Ganesh Benzoplast are trading 5% lower on Wednesday at ₹130.94. The stock has still risen 60% so far this year.