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Summary
- CDC Group Plc is set to acquire a substantial stake in TVS Industrial and Logistics Parks (TVS ILP)
- This is for the first time TVS ILP is raising an institutional investment
- With the deal, CDC will now become a minority stakeholder in the company
UK-based development finance institution CDC Group plc is set to acquire a substantial stake in TVS Industrial and Logistics Parks (TVS ILP), which is a 50-50 joint venture between Ravi Swaminathan Associates and TVS Supply Chain Solutions.
The financial details of the transactions were not disclosed by any of the entities. However, as per the media reports, the CDC Group is all set to acquire a 40 per cent stake in the TVS ILP. The transaction marks the first-ever funding from an institutional investor raised by TVS ILP. Avendus Capital is the sole financial advisor to TVS ILP on its capital raising from CDC Group.
(Image source: ©Kalkine Group 2020)
Talking about the acquisition deal, TVS ILP Director R Dinesh said the company has been constantly working hard to scale its development and has seen substantial growth over the years. However, this acquisition is a strategic move that should enable the firm to deliver an even higher growth rate for further expansion.
Similarly, another TVS ILP director Ravi Swaminathan said that the company has already established skill and expertise in the segment for the last 15 years, including the capabilities to boost the business. Now, the firm aims to focus on growth and expansion and therefore, the acquisition deal is very crucial.
He added that the acquisition is the first-of-its-kind investment by an impact investor for their business.
CDC Group’s managing director and head of Asia Srini Nagarajan said TVS ILP is playing an important role in offering investment quality stores across the underserved markets. This would aid in facilitating the exports and transportation with effective logistic capabilities.
He added that the step will help in connecting various regions, boosting markets, and slashing down the price of goods for customers. In fact, with this deal, nearly 3,000 construction jobs would be created. Another 500 jobs will be added during the enhancement of warehousing operations.
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In addition, the construction would be within the guidelines of EDGE advance green building standards, which will also reduce the greenhouse gas and help in controlling climate change.
