Shreyas Shipping receives approvals from BSE, NSE to delist shares; indicative price at Rs 338

Shreyas Shipping & Logistics Ltd has received in-principle approval from stock exchanges BSE and NSE for the proposed delisting. To recall, Transworld Holdings had announced its intention to voluntarily delist shares of its Indian subsidiary on May 21 and the proposal was approved by the company's board of directors on May 24 and by shareholders of Shreyas Shipping vide special resolution on July 3.

Transworld Holdings has issued detailed public announcement, regarding the same on September 8. The floor price determined as per delisting regulations stands at Rs 292 and Transworld Holdings suggested its intention to acquire shares of Shreyas Shipping at an indicative price of Rs 338.

Under applicable laws, Shreyas Shipping can be delisted by acquisition of equity shares of Shreyas Shipping if the same would result in post-offer shareholding of Transworld Holdings and its affiliates in Shreyas Shipping being at least 90 per cent of the total equity shares issued by the company. It would also depend on the satisfaction of certain other applicable regulatory conditions (minimum tender condition). At present, Transworld Holdings along with its affiliates holds 1,54,66,650 equity shares aggregating to 70.44 per cent of the paid-up equity share capital of Shreyas Shipping .

The proposed delisting is now subject to satisfaction of the 'Minimum Tender Condition', and other regulatory approvals. If consummated, the purchase of the equity shares of Shreyas Shipping will be carried out in accordance with the delisting regulations at a price to be determined through the reverse book building process.

Chairman of Transworld Group, Sivaswamy Ramakrishnan, said: "Transworld Group continues it's efforts to simplify the group structure. This proposed transaction is fully aligned with the robust strategy pursued over the years. It will transform the Group's credit profile while offering a fair exit price to minority shareholders. Provided it can be completed at a price that balances the needs of all stakeholders, it has the potential to fundamentally reposition our business for the future."

Shreyas Shipping & Logistics is a leading player in the coastal shipping sector and is engaged in owning and chartering container and bulk vessels.

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