Chennai: Sical Logistics, a Coffee Day Group company, has sought shareholders' permission to sell, dispose of or hive off multiple business undertakings to pare debt. It has also proposed to deleverage the firm by raising the limit in making investments, extending loans, guarantees or providing securities to persons or corporate bodies up to Rs 200 crore.
In order to pay off the debts and for running the major businesses of the company in a smooth manner, the board of directors at their meeting held on August 2, 2019 had directed the management to explore the opportunities to deleverage the company and its subsidiaries, the company said in a notice sent to its shareholders.
The company is currently looking to sell its various business units as well the shareholdings held in the subsidiaries either as such or consolidating by purchasing the shares held by any other investors in the subsidiaries.
Such sale shall be for a price based on valuation and made either through strategic sale or slump sale. The proceeds would be utilised to pay off the debts. The firm is in the process of identifying suitable buyers.
The company has also been exploring opportunities to deleverage it and its subsidiaries as per the directive of the board of directors. During this process, the company may be required to consolidate its holdings in some of the subsidiaries or undertakings by acquiring the shares of other shareholders or joint venture partners in those subsidiaries and undertakings and then take appropriate action for sale of such units.
