Ganesh Benzoplast Sells Tank & Rail Biz for ₹1,154 Cr to KKR-backed Cisternina
Ganesh Benzoplast Limited (GBL) has signed definitive agreements to sell its Liquid Storage Tank and Railway Network Businesses to Cisternina Logistics Private Limited (CLPL), a platform majority-owned by KKR. The transaction, valued at ₹1,154 crore, involves the sale of GBL's liquid storage tank business at JNP, Goa Port, and Cochin Port, along with its rail logistics business in Daund. Proceeds will be used to expand GBL's chemical manufacturing, food preservatives, lube oil additives, chemical trading, and EPC businesses. CLPL will also engage GBL for EPC services related to pipeline and tank expansion at JNP, expected to generate an additional ₹280 crore in revenue over 18-24 months. The deal is subject to regulatory and shareholder approvals, with completion expected in tranches over 18-24 months. GBL is considering corporate actions like buybacks to enhance shareholder value.
Key Highlights
- GBL divests liquid storage and rail logistics businesses for ₹1,154 crore.
- Proceeds to fund expansion in chemicals, food preservatives, and EPC.
- KKR to make a majority investment in the acquiring entity, Cisternina Logistics.
- GBL to provide EPC services to the buyer, generating additional revenue.
- Transaction completion subject to approvals, expected over 18-24 months.
Price Impact
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