Canadian firm CDPQ to invest Rs. 1000 cr in TVS’ logistics arm

The Dollar Business Bureau

CDPQ, the Canadian pension fund company, on Wednesday announced that it will invest more than Rs.1,000 crore to acquire a significant minority share in the third-party logistics arm of TVS Group, that includes buying out the present private equity investors KKR and Goldman Sachs. 

“CDPQ will invest over Rs.1,000 crore ($155 million) to acquire a minority stake in TVS Logistics Ltd. With this transaction, Goldman Sachs and KKR will fully exit from their investments,” R Dinesh, Managing Director of TVS Logistics Services' told reporters in Chennai.

He declined to disclose the percentage of shares held by KKR and Goldman Sachs, and said that KKR had invested around Rs.240 crore and Goldman Sachs hadinvested around Rs.120 crore.

KKR invested in the logistics arm in 2012 whereas Goldman Sachs had invested around Rs.120 crore in two tranches since 2008. 

CDPQ will buy out most of the joint shares held by both the firms whereas TVS management and family members will have the remaining, Dinesh said. 

He further said that they are perfectly in line with CDPQ and is willing to do more investment. 

CDPQ has done some investments in India including acquiring 30 percent share in Edelweiss ARC and will also commit substantial additional capital for funding expansion and acquisitions of the company, said a joint statement by the two companies. 

“TVS Logistics, which recorded revenues of around Rs.4,200 crore last fiscal, has set a target to achieve Rs.5,700 crore in current fiscal,” informed Dinesh. 

“The target of the company is to increase that revenue three-fold in the coming three to five years,” he added.