Nippon Express has agreed to acquire a 22 per cent stake in Future Supply Chain Solutions (FSC). This transaction is a combination of primary issuance and secondary purchase from an existing Investor. As part of this transaction, FSC will issue 37,89,350 shares to Nippon Express at a price of ₹664 per share (22 per cent premium to the current market price). Through this primary issue Nippon Express will hold 8.6 per cent stake on a fully diluted basis and FSC will raise around ₹252 crore for funding its near-term growth plans.
Nippon Express and FSC plan to explore synergies between the two organizations. FSC and Nippon Express will jointly evaluate leveraging Nippon Express’ competency in diverse sectors for the Indian market. FSC plans to leverage Nippon Express’ Japanese and MNC clients for exploring new business opportunities in India, especially for 3PL and express logistics operations. Nippon Express will also have representation on FSC’s Board of Directors, which will further strengthen its board through their strategic direction.