मुंबई Mumbai: APL Logistics Ltd, a wholly owned subsidiary of the Singapore based container shipping company Neptune Orient Lines, has acquired the 24% stake held by its JV partner, HIPE Transportation Infrastructure Ventures, in India Infrastructure & Logistics Private Limited for a consideration of $10 Mn (c.R60 Cr).
With this IILPL, operator of freight rail train services in the country, has become a wholly owned subsidiary of APL. The all cash deal was funded through NOL Groups’s internal accrual.
The JV formed with Hindustan Infrastructure Projects and Engineering (HIPE), offers container rail freight service connecting New Delhi and Mumbai. The services are offered under the the APL IndiaLinx brand. The JV formally received a Category 1 licence to run freight trains in India for 20 years, extendable by another 10 years, in March 2006.
Based on the unaudited consolidated accounts of IILPL, the net asset value of IILPL as at the end of the 3rd quarter of 2014 was approximately $17.7 Mn and the EBITDA of IILPL for the 12 months ended September 2014 was approximately $4.3 Mn.
APL Logistics also operates Delhi-based APL Logistics VASCOR Automotive, a JV between APL Logistics and VASCOR, which offers AutoLinx, a door-to-door service covering the entire supply chain for from assembly line to distribution center to dealership floor. AutoLinx, launched in November currently runs fortnightly between Chennai and New Delhi.
The parent, shipping and logistics company Neptune comprised of two major divisions – APL Logistics, a global freight management and logistics business, and a separate container shipping business named APL, was previously looking at selling of its APL Logistics division to garner more than $750 Mn.
The company had also appointed bankers for the same. APL Logistics accounts for 18% of the groups turnover.
Hindustan Infrastructure Projects & Engineering (HIPE) is the Infrastructure Development venture of Jupiter Capital, having a diverse business portfolio across sectors including roads, highways and bridges, ports, marine engineering and construction, railways, utilities, petroleum and natural gas, transportation and logistics, realty and facility management, hospitality and tourism and other ongoing projects.