Singapore-headquartered SSG Capital Management Group, a distressed assets fund management company, will acquire 40 percent stake in Future Supply Chain Solutions (FSC) for Rs. 580 crore, VCCircle reported.
The acquisition will see existing stakeholders such as Hong Kong-based Fung Capital divesting 26 percent of its stake, while the rest will be from Future Retail Ltd (FRL) and its subsidiary FSC's management team, which own approximately 70 percent and four percent, respectively, in FSC.
Private equity investment firm Fung Capital's stake sale yielded Rs. 233 crore in its seven years of investment in the supply chain entity, said the venture wire.
The transaction values FSC at about Rs. 1,450 crore.
Kishore Biyani, managing director at FRL, said the deal was a step in the company's stated intent of optimal monetisation of some investments. However, he emphasised that the supply chain arm is of critical importance for FRL's retailing and overall business objectives and, therefore, FRL will continue to hold a majority stake in FSC.
FSC is a supply chain and logistics company incorporated in 2007. It caters to many other companies in food and beverage, apparel, lifestyle, consumer elect electronics and IT, automotive and engineering, home and furniture, and healthcare sectors.
Shyam Maheshwari, partner at SSG Group, said the deal gives the firm a stake in a fast-growing logistics company in India.
VCCircle reported that a rise in modern retail and increase in e-commerce activities have boosted demand for organised supply chain management.