More than five years after first acquiring a strategic stake in Transtech Logistics Pvt. Ltd. (TLPL), Mahindra Logistics, a third-party logistics provider, announced its decision to divest the entire 39.79% stake it holds in the company.
Mahindra Logistics, a part of Mumbai-based Mahindra Group, said in a regulatory filing on Wednesday, "In pursuant to the approval granted by the Investment Committee of the Board of Directors of the Company at its meeting held today, viz. Wednesday, 20 December 2023, entered into a Share Purchase Agreement with Transtech Logistics Private Limited an associate of the Company and the Promoters of TLPL, for sale/transfer of the 39.79% stake held by the Company in TLPL i.e., 100 equity shares of Rs. 10 each and 65,988 Compulsorily Convertible Preference Shares of Rs 50 each, for a consideration of Rs 1,32,176 to be discharged by the Promoter of TLPL in cash to the Company, on the terms and conditions more specifically defined in the agreement".
Mahihdra Logistics stated in the filing that the company has ceased consolidating its share of profit/loss at Transtech Logistics Private Limited under the equity method since the investment was fully impaired in earlier years.
The revenue from operations of TLPL for the financial year ended March 31, 2023, was Rs 3.26 crore.The net loss of TLPL for the financial year ended March 31, 2023, was Rs. 1 crore. The net worth of TLPL as of March 31, 2023, was Rs 0.04 crore, the company added.