Canada-based pension fund Caisse de depot et placement du Quebec, popularly known as CDPQ, on Wednesday said that it has bought out substantial stakes of two major private equity (PE) funds in TVS Logistics Services, namely Goldman Sachs and KKR, for a consideration of R1,000 crore ($155 million). CDPQ will now become a prominent minority stakeholder in the TVS group company.
The promoters of the TVS Logistics Services bought out the remaining stake of the two PEs for a consideration of R200 crore to increase its stake to become a majority shareholder in the company.
Though the officials of both CDPQ and TVS Logistics refused to divulge the exact stake holding, however, sources pointed out that TVS Logistics will be holding around 60% stake post its fresh investment into equity while CDPQ will be the substantial minority stakeholder. Tata Capital, which invested around R125 crore into TVS Logistics a few quarters ago will be another minority stakeholder in the TVS group company and together they command 40% stake, sources added.
Addressing a press conference here to announce the deal, R Dinesh, managing director, TVS Logistics said: “We wanted to give an exit to both Goldman Sachs as well KKR, who have been with the company for 8 and 4 years, respectively, with their combined investment of more than R400 crore into equity. Known as a long term investor, CDPQ will bring in lot of synergies, including its customers in North America as well in Asia Pacific and other regions.”
“We have been in discussions with CDPQ for a year and we found a great partner with their investments now,” he added.
To a question, Dinesh said: “Though CDPQ has not invested directly into the company, but they have agreed to invest more into equity as well support TVS Logistics’ future growth as and when needed. Our ambition is to treble our turnover from expected R5,700 crore in current fiscal to R18,000 crore in next three years and that could be an ideal time for our IPO.”
“Defence is our core focus as we have bagged the UK Defence ministry’s pound 2 billion logistics service order, where we expect to help the UK government save pound 500 million and we hope to earn $250 million in revenue,” Dinesh pointed out. “We are looking at such big deals in India too,” he added.