Canadian fund Caisse buys $155-mn stake in TVS Logistics
20 October 2016
Canada's No 2 pension fund, Caisse de Depot et Placement du Quebec (CDPQ), has invested $155 million in TVS Logistics Services Ltd, to acquire a minority stake in the privately held Indian company.
"CDPQ will invest over Rs1,000 crore ($155 million) to acquire a minority stake in TVS Logistics Ltd. With this transaction, Goldman Sachs and KKR will fully exit from their investments", TVS Logistics Services' managing director R Dinesh
He, however, declined to reveal the percentage stakes held by Goldman Sachs and KKR. "Goldman Sachs had done investments of about Rs120 crore and KKR was about Rs240 crore," he said. Goldman Sachs had pumped in Rs120 crore in two tranches from 2008 onwards while KKR invested in the company in 2012.
The Canadian fund will acquire a major part of the shares currently held jointly by Goldman Sachs and KKR & Co LP while parent TVS Group's management will acquire the remaining, according to a statement issued on Wednesday
CDPQ had, earlier this month, invested 30 per cent in the equity of a joint venture stressed assets and private debt fund in partnership with Indian financial services firm Edelweiss Group and said it planned to invest up to $700 million over the next four years in the business.
CDPQ, which opened its first Indian office in New Delhi earlier this year to scout for investments in South Asia, also is looking to invest in in renewable energy programmes in India.
"TVS Logistics, which clocked revenues of about Rs4,200 crore last financial year, has set a target of achieving Rs5,700 crore in this year", Dinesh said. "Our target is to triple that revenue in the next three to five years," he added.
Stating that the company has been diversifying its business, he said, "earlier our focus area was one hundred per cent in auto sector. Now it is less than 30 per cent. In the United Kingdom majority of the business is defence. We are talking about projects of about two billion pounds."
TVS Logistics is a "very dynamic" company and has been growing very fast over the last few years, CDPQ president and chief executive Michael Sabia, stated in a video message. "we are convinced that the company has grown under the leadership of Dinesh. We are coming on board to help it grow not only in India but also internationally".