Competition Commission Approves Nippon Express’ 22% Stake Buy In Future Supply Chain Solutions
An employee collects mercandise at the end of a conveyor belt in a warehouse operated by Future Supply Chain Solutions Ltd. near the Multi-modal International Cargo Hub Airport at Nagpur (MIHAN) in Nagpur, India. (Photographer: Dhiraj Singh/Bloomberg)

Competition Commission Approves Nippon Express’ 22% Stake Buy In Future Supply Chain Solutions

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The Competition Commission on Tuesday said it has approved Nippon Express' acquisition of 22 percent stake in Future Group's logistics arm Future Supply Chain Solutions Ltd.

Future Supply Chain Solutions in September said that Japan-based Nippon Express Co will acquire 22 percent stake through a combination of primary issuance and secondary purchase from an existing investor.

CCI in a tweet said it "approves acquisition by Nippon Express (South Asia & Oceania) Pte. Ltd. of approximately 22 percent of the total issued and paid up share capital of the Future Supply Chain Solutions Limited."

As part of this transaction, FSC will issue 37,89,350 shares to Nippon Express at a price of Rs 664 per share (22 percent premium to the current market price).

"Through this primary issue Nippon Express will hold 8.6 percent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans," the company had said in a regulatory filing.

Further, Nippon Express had informed FSC that it had entered into a share purchase agreement with institutional shareholder(s) of FSC to acquire 58,63,475 shares representing 14.6 percent of existing share capital, it added.

Both these transactions will result in Nippon Express acquiring a 22 percent stake in FSC (on a post money, fully diluted basis), FSC had said.

Nippon Express will also have representation on FSC's board of directors, which will further strengthen its board through their strategic direction.

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