Transworld Holdings plans voluntary delisting of Shreyas Shipping

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Transworld Holdings plans to voluntarily delist the equity shares of its Indian subsidiary, Shreyas Cargo & Logisticsthrough a reverse book building process.

The company said the proposed repeal of SSL would reduce significant ongoing compliance costs, including costs associated with listing equity shares such as annual listing fees, fees payable to share transfer agents, expenses towards serving shareholders and other expenses incurred.

She added that there would be a reduction in the time allotted to management to comply with the requirements associated with the continuation of the listing of equity shares, which could refocus on its business.

The write-off price will be determined by the reverse book-building mechanism in the write-off regulations. The proposed cancellation of SSL will enhance its operational, financial and strategic resilience, including but not limited to corporate restructuring, acquisitions and exploration of new financing structures, including financial support from the Group. The company said that public shareholders of SSL will get the opportunity to generate instant and specific value for their shares.

Transworld Holdings together with its subsidiaries owns 1,54,66,650 total shares amounting to 70.44 percent of the paid up capital of SSL shares.

Transworld Holdings must buy back at least 90 percent of the total SSL equity shares to delist.

Delisting is subject to approval by SSL’s board of directors and shareholders, fulfillment of minimum tender conditions, and obtaining certain necessary concessions from existing creditors.

Transworld Group Chairman Sivaswamy Ramakrishnan said the delisting is part of the company’s efforts to streamline the group structure and pursue an aggressive strategy over the years.

It will transform the credit profile of the group while offering a fair exit price to minority shareholders. He said that provided it is completed at a price that balances the needs of all stakeholders, it has the potential to fundamentally reposition the business in the future.

NovaaOne Capital is acting as manager of the offer to THL in the write-down process. JSA Solicitors and Solicitors are acting as legal advisors in connection with the Offer.