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Sical Logistics to raise $125 million via convertibles, GDRs, appoints new managing director
By Angela McDaniels
Seattle, March 2 - Sical Logistics Ltd. will raise $125 million via a mix of foreign-currency convertible bonds and Global Depository Receipts, according to a company news release.
The funds will be used to set up a coal and iron ore terminal project at the Port of Ennore, India, for container trains in the JNPT-Delhi and three other strategic sectors and for offshore logistics, trucking and working capital purposes.
An earlier plan for a rights issue of shares, preferential allotment and convertible warrants was cancelled, and the March 29 extraordinary general meeting of shareholders that was to be held to pass the necessary resolutions for the fund raising was also cancelled.
"We believe that, taking into account market valuation and Sical's business priorities, a foreign-currency convertible bond/Global Depository Receipt mix is a sensible option," vice chairman Ashwin Muthiah said in the release.
"One, it's relatively fast. Two, timing-wise being closer to market, we increase the probability of getting better valuations. [And] three, geographically our investor base gets more international [exposure],"he said.
In addition, R. Ramakumar was appointed as the company's new managing director. Ramakumar was previously director and chief operating officer of Sical's logistics division.
He replaces S. Vasudevan, who will become managing director of a new entity that includes non-core divisions expected to be spun off from Sical, according to the release.
Sical Logistics, formerly South India Corp. (Agencies) Ltd., is based in Chennai, India, and provides integrated multi-modal logistics for bulk cargo.
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