Forbes shares tumble 10% intraday as company to sell Container Freight Stations, logistics business

Shares of Forbes & Company tumbled over 10 per cent after the Shapoorji Pallonji Group firm said it will sell two container freight stations and logistics business to Transworld Group Singapore, on slump sale as a going concern for an enterprise value of not less than Rs 93.5 crore.

The stock ended over 9 per cent higher after hitting an intraday low of Rs 1600.00, down 10.43 per cent on the Bombay Stock Exchange (BSE).

"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 of its two container freight stations (CFS)," Forbes & Company said in a BSE filing.

The company will sell its "two container freight stations located at Veshvi and Mundra to TG Terminals Pvt and its logistics business to Transworld Global Logistics Solutions (India) Pvt Ltd, which are part of the Transworld Group Singapore, together with all specified assets and liabilities in relation to the CFS & Logistics Undertaking on a slump sale basis as a going concern for an Enterprise Value of not less than Rs 93.5 crore."

Forbes & Company said it has signed definitive agreements with Mundra CFS and Veshvi CFS and the term sheet for logistics business, and definitive agreements with logistics business is expected to signed by February.

Aggregate turnover of CFS and logistics business of the company was Rs 124.28 crore in fiscal 2014-15 and it accounted for 3 per cent of revenue on consolidated basis.