Transworld Holdings plans to voluntarily delist equity shares of its Indian subsidiary, Shreyas Shipping & Logistics, through a reverse book-building process.
The proposed delisting of SSL will reduce the ongoing substantial compliance costs, including the costs associated with listing equity shares such as annual listing fees and fees payable to share transfer agents, expenses towards shareholders’ servicing and other expenses incurred, said the company.
There will be a reduction in dedicated management time to comply with the requirements associated with the continued listing of equity shares, which can be refocused on its business, it added.
The delisting price will be determined through the reverse book-building mechanism in the Delisting Regulations. The proposed delisting of SSL will enhance its operational, financial and strategic flexibility, including but not limited to corporate restructurings, acquisitions, and exploring new financing structures, including financial support from the Group. Public shareholders of SSL will get an opportunity to realise immediate and certain value for their equity shares, said the company.
Transworld Holdings along with its affiliates hold 1,54,66,650 equity shares aggregating to 70.44 per cent of the paid-up equity share capital of SSL.
Transworld Holdings has to buy back at least 90 per cent of SSL’s total equity shares to delist from the exchange.
The delisting is subject to approval from SSL’s board of directors and shareholders, the satisfaction of the Minimum Tender Condition, and obtaining certain necessary waivers from existing creditors.
Sivaswamy Ramakrishnan, Chairman of Transworld Group, said the delisting is part of the company’s efforts to simplify the group structure and pursue a robust strategy over the years.
It will transform the Group’s credit profile while offering a fair exit price to minority shareholders. Provided it can be completed at a price that balances the needs of all stakeholders, it has the potential to fundamentally reposition business for the future, he said.
NovaaOne Capital is acting as the Manager of the Offer to THL on the delisting process. JSA Advocates & Solicitors are acting as legal advisors concerning the Offer.