Sical Logistics Ltd — a Coffee Day Group company that runs port terminals and container freight stations — is likely to see bidding by JSW Group and Adani Group, sources close to the development told BusinessLine.
The Dubai government-owned DP World, a container major , too, has shown interest, the sources said.
While the mandate to sell majority of Coffee Day group assets was given to IDFC Securities, the mandate for finding a buyer for Sical went to ICICI Securities. It is learnt that the bidders have even entered into a non-disclosure agreement.
Sical Logistics could be a perfect fit for Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest private port operator and Sajjan Jindal-led JSW Infrastructure Ltd due to the logistic company’s presence in areas where they are also operating and looking to expand.
A right deal?
However, potential bidders could be apprehensive about a couple of issues at Sical.
The company’s two key port terminals are operating at Central government-owned major ports where the rates are regulated. Moreover, the revenue share that Sical is contractually-mandated to pay the government ports is steep, making it an unviable proposition for anyone buying the assets.
Read more on The Hindu BusinessLine.