Forbes & Co. decided to exit container freight station and logistic business

Forbes & Company Ltd (Forbes & Co.) has decided to sell its two container freight stations and logistics business to Transworld Group Singapore in their board meeting. The Shapoorji Pallonji Group firm will sell the business on slump sale as a growing concern for an enterprise value of not less than Rs 93.5 crores.

The company will sell its two container freight stations located at Veshvi and Mundra to TG Terminals and its logistics business to Transworld Global Logistics Solutions which are part of the Transworld Group Singapore, together with all specified assets and liabilities in relation to the CFS & Logistics.

Forbes & Co. is engaged in the business of infrastructure, construction and real estate. The Company’s segments include Engineering; Health & Hygiene & Safety products and its services; Shipping & Logistics Services; Real Estate; IT enabled Services; Energy Solution, and others. The Company operates in three divisions, which include engineering, shipping and logistics, and transaction management solutions.

Under the current economic situation and industry outlook, the board deemed a slump sale as the most appropriate method for exit and has accordingly granted its approval to the company to sell, transfer or dispose off its two container freight stations (CFS). Forbes & Co. said it has signed definitive agreements with Mundra CFS and Veshvi CFS; and the term sheet for logistics business, alongwith definitive agreements with logistics business, is expected to be signed by February.

On the financial front aggregate turnover of CFS and logistics business of the company was Rs.124.28 crore in fiscal 2014-15 and it accounted for 3% of revenue on consolidated basis. The segment networth contributed by CFS and logistics undertaking was Rs 2.75 crores in FY15. The total consolidated operating revenue of Forbes & Co. for FY15 stood at Rs 3546 crores, an increase of 15.61 per cent as compared to Rs 3067 crores in FY14 . EBITDA margin for FY15 stood at 5.70 per cent compared to 7.03 per cent for same period last year. The net profit of the company for FY15 stood at Rs 37.05 crores, a decrease of 26.56 per cent on yearly basis. The proposed transaction is subject to closing adjustments and debt, if any, to be transferred.