Dubai-based port operations major DP World said on Wednesday that it had bought three units of India-headquartered Transworld Group promoted by local businessman Ramesh Ramakrishnan.
DP World’s subsidiary Unifeeder Group has acquired the units.
These include Transworld Feeders FZCO and Transworld Feeders Pvt Ltd (the containerised Indian coastal and export-import feeder operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations).
Avana Logistek Ltd (including its subsidiary Avana Global FZCO) is also a part of the deal, Mumbai-listed Shreyas Shipping said in a filing.
DP World will pay a total of $48.7 million (Rs 364 crore) for the deal, of which Shreyas Shipping will get $27.7 million (Rs 207 crore).
Transworld Feeders FZCO and Avana Global FZCO are independent feeder and NVOCC (non-vessel operating common carriers) operators, offering container feedering services and regional trade solutions connecting a wide range of ports in West Asia, subcontinent and Far East, Shreyas Shipping said.
“The central hub port at Jebel Ali (UAE) plays a pivotal role for a large part of the services,” the company release further added.
The companies have a capacity of 1.2 million teu or twenty-foot equivalent units.
DP World had acquired the Danish feeder operator Unifeeder two years back in August 2018 for $764 million from Nordic Capital Fund VIII and some other minority shareholders.
In December last year, Unifeeder had acquired a 77% stake in Singapore based Feedertech for an unspecified amount.
Just three weeks back, a joint venture between DP World and India’s National Investment and Infrastructure Fund announced a Rs 1,000 crore investment in a free trade zone of the Jawaharlal Nehru Port Trust.
The latest acquisition comes even as DP World’s first-half profit for the year has fallen 56% due to a slump in container volumes. Interestingly, the fall in profit came despite an 18% surge in revenue during the period.
