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Fairfax India Holdings Corporation has announced that, through its wholly-owned subsidiary (collectively, Fairfax India), it has completed its previously announced acquisition of 51 per cent of the outstanding shares of Saurashtra Freight Pvt. Ltd for an aggregate consideration of approximately Rs 2 billion (approximately $30 million at current exchange rates).
The transaction is now closed and Fairfax has acquired majority stake in Saurashtra Freight, which owns Saurashtra CFS in Mundra.
An earlier release in January had said that Fairfax India has entered into an agreement to invest Rs 2 billion for a 51 per cent equity ownership in Saurashtra Freight Pvt. Ltd (Saurashtra Freight). Saurashtra Freight will use the proceeds to acquire the Container Freight Station (CFS) business from Saurashtra Infra and Power Pvt. Ltd (Saurashtra Infra) and for future expansion.
Saurashtra Infra runs the largest CFS at Mundra Port (Gujarat), the 2nd largest and fastest growing port in India, as per the release. Saurashtra Infra’s CFS provides services such as moving of containers to and from the port, stuffing/destuffing of containers, cargo storage and transportation of cargo to the end customer as well as storage, maintenance and repair of empty containers.
“We are very impressed with the company’s growth under the leadership of its Managing Director, Raghav Agarwalla. The company is strategically located in the state of Gujarat and caters to the fast-growing businesses in Western and Northern India. We look forward to a long-term partnership with Raghav to grow Saurashtra Freight into a leading logistics company in the country. Logistics and cargo containerisation are the future of India, and will be a key enabler of Prime Minister Narendra Modi’s Make in India initiative. We have had an excellent experience with the ease of doing business in Gujarat and are extremely excited to announce our second investment in the state,” said Mr Prem Watsa, Chairman of Fairfax India.
Welcoming this investment, Mr Raghav Agarwalla said, “We are most excited to have Fairfax India as our partner. Fairfax India’s long-term orientation and decentralised management style will enable us to create a platform to grow the business, thus creating value for all stakeholders. We will now expand our operations at all the major ports across India and leverage our experience across new verticals in the growing logistics industry in India.”
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