Ganesh Benzoplast Ltd to acquire 86.52% equity stake in Stolt Rail Logistic Systems Limited

The Board of Directors ("Board") of Ganesh Benzoplast Limited (GBL) at their meeting held today i.e. Wednesday, October 07, 2020 has deliberated upon and approved the acquisition. The Board reviewed the background of Stolt-Nielsen Singapore Pte Ltd. (Stolt) which is a 100% subsidiary of Stolt-Nielsen Limited (SNL), a leading global chemicals and bulk liquids logistics company. SNL is the world's largest owner of chemical parcel tankers and ISO tank containers. Stolthaven Terminals, a part of SNL, has a global network of ~ 5 million KL of bulk liquid storage capacity in 12 countries. It has annual revenue of USD 2+ bn (more than Rs. 15,000 cr) for 2019 and an asset base of USD 4.5 billion (Rs. 33,500 cr). The Board also noted that Stolt has been a partner in Stolt Rail Logistic Systems Limited for more than 5 years and the working relationship has been excellent.

The Board resolved to acquire 86.52% equity stake in Stolt Rail Logistic Systems Limited (SRLS), a group Company. Consequently, the Board has approved execution of the Share Sale and Purchase Agreement (SSPA) for the aforesaid proposed acquisition.

The Board noted that price as per the SEBI pricing formula for preferential allotment is Rs.58.50p. The Board resolved that subject to receipt of requisite statutory and regulatory approvals, including approval of the shareholders of the Company, the Board has approved the issue and allotment on a preferential basis, 1,05,75,128 equity shares ('Equity Shares') of face value Re. 1 /- each at a price of Rs. 62/- aggregating to Rs. 65.56 cr, in lieu of acquisition of 1,50,72,600 Equity shares of Stolt Rail Logistic Systems Limited at a price of Rs. 43.50p per equity share aggregating to a consideration of Rs. 65.56 cr on private placement basis ('Preferential Allotment') to Stolt-Nielsen Singapore Pte Ltd., Tarang Advisory Private Limited, Sushila Pilani, Poonam Pilani, Rishi Pilani, Anish Modi, Rhea Rishi Pilani and Vedansh Rishi Pilani.

Stolt Rail Logistic Systems Limited is a joint venture between the Promoters and Promoter group of Ganesh Benzoplast Limited and Stolt Nielsen Singapore Pte Ltd. The Promoters and Promoter group of GBL holds 49.94% shareholding in Stolt Rail Logistic Systems Limited and Mr Rishi Ramesh Pilani, Managing Director of GBL is also Managing Director in Stolt Rail Logistic Systems Limited.

SRSL 1s engaged in the business of providing end to end bulk liquid storage and transportation facilities from shore to plant SRSL owns tank containers and leases rakes and tanks at vanous ports and inland locations.

SRSL utilizes Indian railways infrastructure for transportation of liquids. SRSL has loading and unloading facilities at JNPT, Nagpur, Dahej and Daund.

The Company is incorporated as a Public limited Company on February 26, 2001 in the name of Infrastructure Logistic Systems Limited, the Company has changed its name to Stolt Rail Logistic Systems Llquted on March 05, 2016.

The management wants to consolidate the business of GBL and SRSL to achieve operational efficiency. In view of the same, Ganesh Benzoplast Limited is proposing to acquire majority stake in SRSL through swap of shares arrangement.

Shares of GANESH BENZOPLAST LTD. was last trading in BSE at Rs. 64.80 as compared to the previous close of Rs. 63.60. The total number of shares traded during the day was 2,98,235 and the deliverable quantity was 2,53,291 shares.

The stock hit an intraday high of Rs. 66.15 and intraday low of 63.

Source : Equity Bulls

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