MUMBAI: Denmark’s Svitzer, Japan’s K Line and Australia’s Qube Logistics are among the strategic investors in talks with Hyderabad-based Ocean Sparkle to acquire a controlling stake in the company, in a deal valuing the Indian shipping firm about $450-500 million.
The buyers have made nonbinding offers to acquire 74 per cent stake in the company, people with direct knowledge of the matter told ET. Ocean Sparkle, a leading port services firm, controlled by a bunch of PE investors, including a fund managed by Standard Chartered, has asked Jefferies to run a formal process to find a buyer, sources said.
The funds- Infrastructure India Holdings Fund, Standard Chartered PE and International Finance Corp, the investment arm of the World Bank Group together own around 53 per cent in the company, while the rest is controlled by the promoters.
Standard Chartered invested Rs 200 crore in the company in 2012, while IFC invested $11.5 million a year earlier. “It’s a strategic deal and most of the interested parties are strategic buyers. We have received some non-binding offers and are evaluating them,” said one of the persons.
However, when contacted, Ocean Sparkle CMD P Jairaj Kumar told ET that the company has not mandated anyone, nor is it in the process of selling the company. “The company has not mandated any investment banker for the purpose of selling its controlling stake. The company has absolutely no knowledge of either Japan’s K Line or any other strategic investor evincing any interest in the company. We believe that this is incorrect,” he said.
The last time that the company invited presentations from investment bankers was to look at an IPO or alternate means of finance almost two years ago. This has since been tied up, he added. Standard Chartered and IFC declined to comment.
The company serves all the major ports in India with its fleet of 69 harbour tugs, eight pilot boats, five mooring boats, six dredgers and five barges, according to its website. The company provides marine vessels and comprehensive port management services across various major, nonmajor and captive ports in India and abroad.
The company posted a profit after tax of Rs 61 crore on an operating income (OI) of Rs 445 crore compared to a PAT of Rs 40 crore on an OI of Rs 389 crore in 2013-14. Started in 1833, Svitzer is one of the oldest firms and is a market leader in support services at sea.
With 4,000 employees, it has a fleet of 430 vessels and operates across the world. The company is part of the Maersk Group, which has significant presence in the country through its unit, APM Terminals, which holds a controlling stake in Gujarat Pipavav PortBSE 0.17 %.
