Logistics companies relook at targets amid slowdown Ashutosh Kumar

Logistics companies have started feeling the heat the global economic downturn and of revised growth projections domestically.

Integrated supply chain and logistics services provider Transport Corporation of India (TCIL) is pruning its Rs 200 crore expansion plan. The investment was focused on acquiring ships, trucks and warehousing space by 2010.

"We are slashing our expansion plan by half at Rs 100 crore, owing to slowdown in the economy. We will, for the time being, shelve plans for acquisition of ships and trucks," said Vineet Agarwal, executive director, TCIL. Agarwal said that the slowdown will acquire more serious dimensions in the near future.

"We have already seen substantial increase in failures on payment commitments by the clients. We will not hesitate in winding up operations in verticals that are not profitable," he added. The TCIL scrip has taken a beating on the stock exchanges.

The scrip slipped from Rs 175.85 per share in December last year to Rs 38 a share now, registering a sharp 78% dip.

The company has initiated mega cost-rationalisation drive to tide over the situation. "We are taking various initiatives to ensure that there is optimum utilisation of manpower, materials and resources," Agarwal added.

Another major player in the logistics space, Bluedart, which provides express air and integrated transportation services, has winded up its expansion plan worth Rs 200 crore for this year.

However, the company officials feel that the slowdown will certainly affect volume growth and in turn dent its bottomline.

Bluedart has already reported a 22% decline in profit after tax for the quarter ended September 30, 2008, at Rs 13.58 crore compared with Rs 17.43 crore in the corresponding quarter last year.

"Volume growth has comne down from 20% earlier to around 13-14% now," said Anil Khanna, managing director, Bluedart.

"The logistics sector is totally dependent on the services and manufacturing sectors, which are wilting under the slowdown heat. This is certainly having an impact on almost all verticals of logistics services. It now depends on what initiatives the government takes on lending rates and liquidity to boost consumption and growth," he added.

Bluedart, apart from cost rationalisation is also planning to hike freight charges by up to 5-10%, said Khanna.

Logistics services provider Safexpress, however, is quite confident of its investment plans.

"The current recession is affecting growth. But our plans of doubling revenues to 1,000 crore remains unchanged," said Vineet Kanaujia, general manager, Safexpress.

Speaking on the outlook of the sector, Harsh Srivastava, senior VP, (marketing), Feedback Ventures, said, "This sector will certainly grow. Economy demands logistics. Garments, power equipments, construction equipments, food will move as the economy is moving."

Crowley acquires Customized Brokers

Crowley Holdings Inc., the newly formed holding company for Crowley Maritime Corp., has acquired Miami-based Customized Brokers, a customs clearance company specializing in refrigerated cargoes arriving by air and sea. Terms were not disclosed.

Customized Brokers, which has 32 employees, will remain an independent company with its office in Miami, and will continue to serve its current clientele while offering additional logistics services through Crowley Logistics. Customized Brokers has specialized in the clearance of fresh fruit and produce since its founding in 1989.

China Chongqing Gangjiu ends $220 mln asset deal

SHANGHAI, Nov 8 (Reuters) - Chongqing Gangjiu Co (600279.SS: Quote, Profile, Research, Stock Buzz), a port operator in China's western city of Chongqing, said on Saturday that it had scrapped a $220 million deal to buy port assets from its parent because of poor stock market conditions.

Gangjiu had announced in June that it would raise 1.5 billion yuan for the purchase by placing 144 million new shares at a minimum of 10.41 yuan apiece with its parent firm, Chongqing Port & Logistics Group.

But Gangjiu said on Saturday that both sides had agreed to cancel the plan because of the stock market crash, which has prompted a string of Chinese companies to call off asset purchases and fund-raising deals over the past six months.

Gangjiu's shares last closed at 4.47 yuan, down from 11.29 yuan when its deal was originally announced. ($1 = 6.82 yuan).

Austin Ventures Announces Investment with Robert Stull to Launch Port Logistics Group

Austin Ventures ("AV"), one of the nation's leading venture and growth capital firms, announces the acquisition of three companies to launch Port Logistics Group ("PLG"). The investment was made in partnership with Robert Stull, a leading executive in the transportation logistics and distribution services industries. Mr. Stull will lead PLG as its President and Chief Executive Officer. With revenues of approximately $100 million at its launch, PLG becomes one of the leading nationwide providers of warehousing, distribution and transportation services in U.S. port cities. PLG develops and implements innovative logistics solutions to help the world's leading companies get their products to market faster and more efficiently. The company will be headquartered in Houston, Texas.

"We are excited about our investment with Bob to build a national, port-focused logistics company. He is a skilled operator, an innovative executive, and a dynamic leader who has developed great teams and delivered strong results for his customers and his shareholders at every step in his career," said David Lack, AV Partner. "These initial acquisitions are the first of many that we will make with Bob as PLG extends the reach of its port logistics capabilities for its customers."

"After conductingsubstantive market research and having discussions with severalcompanies, both large and small, I became convinced of the need for a nationwide logistics company that provides consistent, high quality service across a broad range of logistics services in our nation's port cities," said Bob Stull, CEO of PLG. "We have launched this platform with companies who are highly regarded by their customers for delivering superior service in their local markets. I look forward to meeting with other founders and entrepreneurs operating in port cities that share our vision and want to join us in this initiative."

Mr. Stull is the former President and CEO of Roadway Express, one of the largest transportation companies in the United States. His career with Roadway is a corporate success story -- Mr. Stull accepted an entry level position with Roadway in 1977 and progressed through the ranks over the next 28 years to become CEO of the $3 billion enterprise. During his tenure, Mr. Stull implemented changes which led to significantly increased operating income and successfully guided the organization through its acquisition. Under his leadership, Roadway Express became known as an industry leader in the areas of employee engagement and leadership development. Prior to being President and CEO, Mr. Stull served as Roadway Corporation's Vice President of New Venture Commerce where he was responsible for diversifying and growing the company's portfolio of businesses, broadening its network of strategic partnerships, and launching new products.

"AV has been an active investor in the supply chain services market for almost a decade. Our investment in PLG with Bob is a reflection of our continued commitment to pair strong supply chain and logistics businesses and their founders with seasoned, successful senior executives and the capital and logistics experience of AV," said Phil Siegel, AV General Partner.

AV's relationship with Mr. Stull was established as part of a stated strategy to partner with talented executives with proven track records to build growth companies in attractive markets. AV has a dedicated in-house talent function that identifies executives that want a hands-on partner in building their next business.

EI buys Chinese logistic developer

Equity International, the private equity real estate firm co-founded by Sam Zell and Gary Garrabrant, has acquired its third real estate portfolio company in China. Yupei develops and manages industrial, warehousing and logistics properties.

Equity International has bought a Chinese industrial and logistics development company for $46 million – it’s third portfolio company in the country, according to a statement.

The Chicago-based private equity real estate firm, co-founded by Sam Zell and Gary Garrabrant, said it closed the deal with the private Shanghai Yupei Company, which develops, owns and operates modern industrial, warehousing and logistics properties in China, this week.

Yupei currently has five properties in four cities across China, comprising approximately 350,000 square metres. The deal marks Equity International’s third portfolio company in China.

Garrabrant said there was increasing demand for new warehouses in China, driven in part by the obsolence of old stock and a lack of suitable space. He said the growth in domestic consumption would fuel this further adding there were “powerful fundamentals” for the sector.

Aberdeen-Based Containental Offshore Acquired by Investor Group

Aberdeen-based Containental Offshore has been acquired by an investor group led by London-based private equity firms, Lansdowne Capital and Claver Capital.

The company provides high-specification containers and cargo carrying units to the offshore oil and gas industry and the acquisition, which valued Containental Offshore at in excess of £10 million, provides a strong and secure financial base for it to further expand its fleet of over 2,500 rental units.

The deal was backed by debt funding arranged by the Royal Bank of Scotland (RBS).

Containental Offshore’s management team of David Nightingale and Peter Coy, will remain with the business and are reinvesting as part of the transaction.

The move will also enable the company – based at Pitmedden Road Industrial Estate, in Dyce – to develop into further overseas’ regions while also extending its product offering into related offshore oil and gas services and equipment.

The company – which currently employs 14 staff – also expects to increase its workforce considerably over the next few years as it grows both organically and through further acquisition.

Containental Offshore’s Managing Director, David Nightingale said: “We are excited to have Lansdowne Capital and Claver Capital working with us on the further development of the business. This sizeable investment by leading international financial experts will allow us to accelerate our expansion and build on the successes of recent years, both in our domestic and international markets.

“We have invested significantly in our rental fleet but we have also built a strong bespoke container design and manufacturing business that has exceeded all expectations. We now export to oil service customers in locations as diverse as Australia, Asia, Africa and the Americas.

“This growth has been driven by the broadening acceptance of high specification DNV 2.7-1 / EN 12079 industry standard equipment by the upstream oil industry and an ever increasing variety of cargo being transported to offshore installations.”

Mr Nightingale added that the recent acquisition provides the resources necessary to substantially grow the business through a combination of capital investment, rolling out new services and further acquisitions both in the UK and overseas.

Containental Offshore represents Lansdowne Capital’s first investment in an oil services company, but the firm has had excellent success in related sectors and believes that a number of important trends support the potential for growth of logistics businesses in the oil services sector.

Lansdowne Capital’s Chairman, Alan Dargan said: “We have previously supported a number of successful investments in the packaging and distribution sectors, and identified in Containental Offshore an excellent opportunity to support experienced management to expand their global reach and attain their full potential.”

RBS Structured Finance provided acquisition and working capital facilities in support of the deal.

Stuart Roberts, Head of Structured Finance with RBS in Aberdeen, said: “This is a great deal for all parties involved. David and Peter both have significant oil and gas industry experience and stand to benefit not only from the injection of new capital, but also the ideas and experience that will be brought to the table by these ambitious private equity sponsors.”

Logistics firm picks up Perth business

The credit crunch has not slowed logistics and data management company Freightways' ambitious Australian expansion plans.

The company yesterday announced that it had acquired Perth-based Access Information Management for A$3.5 million ($4.01 million).

Access, a document and data storage business, adds to the company's stable of information management businesses across the Tasman, which has grown from the initial purchase of data storage firm DataBank in 2006.

The company also owns Brisbane-based Document Destruction and Paper Recycling, Queensland firm Shred-X and Victoria Paper Recyclers. Earlier this year, it purchased National Records Managers in Canberra and Melbourne's Fine Paper Suppliers.

Managing director Dean Bracewell said the acquisition of Access "further extends our footprint" in the Australian information management market.

"We can now offer a national service to our customers and prospective customers in all areas except for Tasmania and Northern Territory where we've got very established agency agreements. We've got our own presence elsewhere, right up the eastern seaboard and across to WA now."

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Bracewell expects Access to generate earnings before interest, tax, depreciation and amortisation (ebitda) of about A$600,000 in the following 12 months, and be immediately earnings per share positive.

The company's information management businesses now account for around 15 per cent of its earnings, although express package delivery and business mail still account for the major part of its income.

Bracewell said the company was "always looking" for further acquisitions. He said Freightways had no difficulties accessing credit, having renegotiated its bank facilities in October last year: "At that time, we negotiated headroom for the type of acquisition we've been doing in recent times such as this one, so we've got sufficient headroom to continue to look at growth opportunities."

At the company's annual meeting last month, Bracewell announced ebitda for the three months ending September 30 was up 8 per cent, while net profit after tax had increased 3 per cent over the previous corresponding period.

Wincanton at the races again with £24m Suffolk deal

Supply chain specialist Wincanton has swooped for a second East of England logistics provider, taking its total investment in the region this year to £49 million and making it the UK’s leading container logistics provider.

Suffolk haulage specialist, CEL Group, is the latest acquisition, bought for £24 million and joining the £25m purchase that Wincanton made in January this year of Hanbury Davies, another Suffolk container firm.

While the Hanbury Davies deal brought in a workforce of 780 operating 480 vehicles and announced Wincanton’s full time entry into the container logistics sector, the CEL deal seals its place in the market with a 15 per cent market share.

CEL Group operates a fleet of 370 vehicles and employs 470 people from centres across the UK and its acquisition brings a portfolio of major shipping lines and freight forwarders to Wincanton, significantly broadening its customer base.

It trades under three companies, CEL (Logistics), W Carter (Haulage), and CEL (Engineering) and reported turnover of approximately £60.7m in the 12 months to August 31, 2008.

Its operations cover all the major UK ports including Felixstowe, Tilbury, Dordon, Liverpool, Hull, Middlesbrough.

Though Wincanton’s announcement said the acquisition would enable the company to maximise synergy benefits with the integration of its existing container business with CEL, a manoeuvre often accompanied by job cuts, a company spokesperson said redundancies would be at a minimum as the CEL operation is expected to operate from its existing facilities.

CEL managing director, Shaun Allen, said: “Wincanton’s focus on the container industry within the supply chain mirrors our own strategic objectives for growth and we look forward to the opportunities that this will create for our customers.”

The move will also strengthen operations at the inland container terminal in Alconbury, which provides cost-effective off-dock container storage and which Wincanton says will allow it to benefit from the growth in global sourcing and low cost overseas manufacturing.

Managing director of Wincanton Emerging Solutions, Jeff Anderson, said: “This considerable strengthening of our container activities in the UK complements our market leading intermodal business in mainland Europe and demonstrates our future commitment to the container industry and our customers.
“In CEL, we have found a business that provides a strong strategic fit with Wincanton.”

The acquisition will also allow Wincanton to continue its revenue growth, which for the half-year to September 30, 2008 was 16.4 per cent above H1 2007 at £1.20bn, though pre-tax profit fell 45 per cent to £12.0m (H1 2007: £22.1m).

Wincanton has 30,000 people operating across Europe and producing an annual turnover of over £1.9bn, specialising in the automotive, chemicals, consumer goods, food service, hi- tech, industrial, energy & petroleum and retail sectors.

Darren Bear of Grant Thornton, who together with Mills & Reeve’s Norwich office advised CEL on the acquisition, said the deal’s completion was a testimony to the strength of the group.

“CEL Group is a resilient business and one of the largest independent players in the market,” said Bear. “It has continued to perform strongly and that was obviously a huge attraction to Wincanton.”

Colin Carter, joint chairman of CEL Group, said: “Having run this company for over 50 years it was a significant and emotional decision to find a new home for the business.

“Grant Thornton and Mills & Reeve went to great efforts to find the best solution for both the business and the shareholders and understood the sensitivities involved in a process like this.”

Global transportation/logistics industry's M&A activity off 2007's pace

During the third quarter, only 37 merger and acquisition deals valued at $50 million or more were announced in the global transportation and logistics (T&L) industry, slowing the pace of M&A deals in the year's latter half, according to PricewaterhouseCoopers L.L.P.'s quarterly M&A activity report.

Through 2008's first nine months, M&A deals valued at $50 million or more totaled 125, meaning the year's total likely won't match 2007's 193 deals, the report states.

However, a significant number of large deals (those valued at $1 billion or more) were announced in 2008's first three quarters. Fourteen large deals contributed a total deal value of $66 billion. Yet, only one of the 14 deals was announced in the third quarter, when deal value totaled a low $11 billion, PricewaterhouseCoopers said.

"Given the current economic and credit environment, deal activity in the fourth quarter will likely not exceed the levels seen in the third quarter, and may even decline," the report states. "Accordingly, deal value in 2008 is not expected to match the levels of the previous two years."

M&A deal activity outside of the United States slowed in the third quarter — a major change from previous quarters, when deals that didn't include U.S. entities remained ahead of overall deal activity, PricewaterhouseCoopers said.

"It is apparent that the decline of the global banking sector and tightening global credit markets have caused a slowdown in deal activity beyond those transactions that involve U.S. parties," the report states.

Since 2006, interest in deals involving passenger air targets has declined dramatically in favor of passenger ground and rail targets. Only 12 percent of deal value was attributed to passenger air targets during 2008's first three quarters compared with 29 percent in the same 2007 period and 48 percent in the same 2006 period. Rail targets accounted for 23 percent of deal value in 2008's first nine months, PricewaterhouseCoopers said.

"Passenger ground public-to-private deals are attractive for investors due to their stable returns and cash flows, resulting from relatively low competition," the report states. "Passenger air targets are perceived to be riskier investments, due to underperforming stocks and general anxiety about the industry as a whole."

Boeing finishes acquisition of Tapestry Solutions

Boeing said Thursday it completed its acquisition of Tapestry Solutions, a San Diego-based company specializing in services and software systems that improve the tracking and distribution of equipment, spare parts and personnel for the U.S. Department of Defense and other agencies.

Tapestry will operate within Boeing’s St. Louis-based Integrated Defense Systems' Global Services & Support unit.

Terms of the deal were not disclosed.

The acquisition, announced in September, is part of Boeing's strategy to expand in the supply chain and logistics command and control markets.

Last month, Boeing said it also would buy St. Louis-based Federated Software Group, another logistics software firm.

A unit of Chicago-based Boeing Co. (NYSE: BA), Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions. Headquartered in St. Louis, Integrated Defense Systems is a $32.4 billion business with 72,000 employees worldwide.

Nigerian Investors Acquire Panalpina

A group of Nigerian investors with impeccable top drawer credentials led by Port-Harcourt based businessman and oil services technocrat, Chief Charles Obule, has bought over Panalpina Nigeria.

In a seamless transition, Worldwide Premier Logistics Solution (Nig) Ltd, took over the 54-year-long operations of Panalpina in Nigeria as the culmination of a painstaking process which began a few months ago. The wholly indigenous Nigerian company now commands a 100 percent stake in Panalpina.

On the board of Premier Logistics Solution are Mallam Abba Dabo, veteran journalist and businessman, the Turakin Kano, Prince Nasir Bayero an administrator and businessman and Chief Charles Obule, who as managing director is expected to bring to bear his wealth of experience in logistics and shipments garnered in over a decade, in the services of Shell Petroleum Development Company (SPDC) as corporate commercial adviser.

According to Obule, "Impressed by the over five decades in air freighting, sea freighting and provision of sundry logistics solutions by Panalpina in Nigeria, and judging by the quantum of investments in human capital development - local and expatriate - it was indeed a patriotic and moral duty for the investors in Worldwide Premier Logistics Solution Nigeria Limited, to buy over the operations of Panalpina in Nigeria."

Obule stated that the investors who come with impeccable top-drawer credentials and formidable reputations built on honesty, hard work, integrity and patriotism, would stake their reputation to ensure the highest principles of business ethics and international best practices in the provision of logistics services solutions.

By the take-over of Panalpina Operations in Nigeria, Premier Logistics Solution has retained all the staff of Panalpina.

Greatwide Logistics Services Reaches Agreement to be Acquired by Investor Group

Sale is Expected to Significantly Reduce Debt and Interest Burden, Enhance Competitiveness and Position Company for Continued Growth and Profitability Lenders to Provide New $73.6 million Financing Facility

Greatwide Logistics Services -- a national provider of non-asset-based transportation and third-party logistics services -- announced today that it intends to enter into an agreement to be acquired by an investor group comprised of its first lien secured lenders, including affiliates of Centerbridge Capital Partners and the D. E. Shaw group.

Greatwide believes that the transaction will allow it to complete its financial restructuring expeditiously while providing an efficient way to address the company's capital structure needs with no disruption to its operations or customer service. Greatwide expects the sale to reduce its debt and interest burden, enhance its competitiveness and position the company for continued growth and profitability.

"We have been pursuing measures to substantially strengthen our capital structure, and we believe the planned acquisition will accomplish those objectives," said Raymond B. Greer, President and Chief Executive Officer of Greatwide. "Greatwide's fundamentals are solid. We believe the proposed transaction is a prudent and necessary step to significantly reduce our debt and interest burden in order to enhance our flexibility to continue to invest and grow."

To implement the transaction, Greatwide will sell the company under Section 363 of the United States Bankruptcy Code. Other parties will have an opportunity to submit higher and better offers to purchase the company under this Court-supervised process and Greatwide anticipates the sale transaction will be completed early next year.

"We believe this process is the best and most certain way to complete our financial restructuring," said Mr. Greer. "Greatwide is a strong company and we expect that moving forward quickly with this transaction will put the company in a significantly stronger overall financial position, which is good news for our company and those we serve."

In conjunction with this process, certain members of Greatwide's existing first lien lender group will provide $73.6 million in new "debtor in possession" financing to support the business through the 363 sale process. Greatwide is pleased to have the strong support of its first lien lenders and expects to receive preliminary approval for the financing by the end of the week. Upon receiving the necessary approvals, the financing facility will be used to fund ongoing operations. In addition, the company will continue to meet all of its obligations to its customers, employees, independent contractors, agents and capacity providers.

Mr. Greer concluded, "We are fortunate that we have a solid and profitable business model and an outstanding blue-chip customer base. We expect that the new financing facility will allow us to continue to meet the needs of our customers, employees, contractors, agents and capacity providers. We look forward to continuing to operate our business as usual while we take this important step to make Greatwide stronger financially."

Going private?

Not only are stock prices down between 50-80% - many companies today are quoting below their replacement costs. Seems to me like it's a good time then to go private. If only it were that easy. Our delisting laws are so antiquated -that delisting is near impossible as Isha Dalal is about to point out.

Essar Shipping, Essar Steel, Blue Dart, Astra Zeneca, SKF India, iGate, Ingersoll Rand, Balsara Hygiene - they all tried it, but only three succeeded. Getting off the exchange is tougher than getting on in India. So what if falling stock prices are luring companies to go private instead?

TV Raghunath, Head-M&A, Kotak Investment Banking says, �If the capital markets are down as they are today clearly, an exit at these prices and at a premium to the current prices is a good option for the exiting shareholders to use. And for the promoters, it�s a good price to buy. So from an economic equation standpoint it�s a very opportune time. The question that will determine whether it�s successful is a function of two things- how the promoter gets liquidity cause he has to finally cut a check to the shareholders and at what price the delisting price gets discovered, what is the exit price which is discovered.�

And that exit price doesn�t always lead to an exit door for companies, thanks to the reverse book-building process in SEBI�s 2003 Delisting Guidelines. In reverse book building - the promoter quotes a floor price to buy out shareholders. Shareholders can in turn quote prices at which they are willing to tender their shares.

The price at which the highest number of shares are tendered in, becomes the discovered delisting price.

Cyril Shroff, Managing Partner, Amarchand Mangaldas which can work in an adverse way if one shareholder decides to skew the process by bidding fairly high. It has resulted in a situation where this is so artificial that the book building price is 2-3 times the market value which makes it completely uneconomical for an acquirer to delist at such a phenomenal premium to the market price.

That's what happened to Pharmaceutical company Astra Zeneca, which went through one of the country�s very first reverse book building processes in 2004!

The company�s shareholders discovered a price of 3000 rupees per share for delisting, compared to the promoter floor price of Rs 825. That was a premium of 260% to the company's then prevailing stock price!

More recently, in 2007, logistics company DHL made a delisting offer to shareholders of its Indian subsidiary Blue Dart at a floor 10% higher than the market price-but that wasn�t good enough for DHL shareholders, who demanded a 72% premium. Needless to say - neither of these offers went through.

In times like these - it's even more unlikely that promoters will be willing cough up big premiums, or any premium at all. There's no going private, till reverse bookbuilding is well, reversed.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �The pricing formula needs a fundamental relook. And until it is combined with some fair transparent way of bidding process, it should be linked with the market price. It can be at a premium to the market price. You can fix even artificially 25% 50% whatever as a regulation can be prescribed as a premium above market price so that there is an inbuilt element ot enable an acquirer to go ahead.�

Price is one big problem, response is the other. The guidelines require almost every shareholder to play along. For larger companies, 90% of stock has to be acquired by the promoter, whereas a 75% acquisition is mandatory for smaller companies to delist. All this right at the reverse bookbuilding stage or else the offer fails.

Investment Banker Sourav Mallik says, �To get a retail shareholder into a trading terminal and get them to upload their bid has always been the challenge. so when you had a threshold as high as 90% which meant that you have get a significant portion of the retail shareholders to the trading desk, that become a challenge.�

This challenge is exactly why Essar Shipping�s 2007 delisting offer wasn�t smooth sailing.

The company fell short of the delisting threshold by 15% and the offer sank.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �Main reason why offers have been failing is that they have been unable to get the required quantity and meet the SEBI and stock exchange regulations in terms of the minimum number that they need. Like in your example, they keep falling short of the higher number. The quantitative number is too high.�

And even if that high threshold is reached-the battle isn�t quite won. Once the company delists at say, a 90% threshold, what about the remaining 10%. No regulation forces them to sell or squeezes them out!

So promoters may pay the price, get the response and yet never own 100% of their companies.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �The lacuna in India is because of the lack of a squeeze out. Once you give this sort of ability for sellers to fix a high price, logically it should be accompanied by a squeeze out provision. Namely once you cross a particular threshold say 95% the acquirer should be able to squeeze out the minority.�

Or else they could hold you to ransom for a long time!!! And even take you to court over pricing as Essar Steel discovered. It took the company an entire year to delist.

So your stock's going for a pittance and you want to go private - if you're lucky you'll succeed at doing so by this time next year. Unless new delisting norms are put in place. Last year's concept paper to amend the delisting guidelines is still hanging fire.

Li & Fung sticks to acquisition strategy on sales growth

Nov. 7, 2008 (China Knowledge) - Hong Kong-listed Li & Fung Ltd, the world's leading consumer goods exporter, will stick to its aggressive acquisition strategy to further boost its sale growth in the second half of this year despite the global financial turmoil and economic recession, according to Bruce Rockowitz, president of Li & Fung.

Rockowitz said the company has sufficient cash right now, with quite a number of M&A potential objects.

Li & Fung has posted acquisitions worth at least US$1.1 billion in the past two years.

Reportedly, Li & Fund has been involved in bidding for a 15% stake in Future Logistics Solution Ltd, a logistic and supply chain subsidiary of India-based Future Group.

In August, the Hong Kong-based consumer goods exporter clinched a deal to acquire the U.S.-based handbag importer Van Zeeland Inc to become a leading handbag supplier in the U.S., as per industry sources.

Li & Fung announced earlier that its first-half net profit reached HK$1.24 billion, up 18% from the same period last year, boosted by an organic growth in operation and increased acquisition deals. The company targets to hit a turnover of US$20 billon by 2010, up from around US$12 billion at present.

Wilson Sons Limited 9M08 EBITDA Up by 25.1% Year-Over-Year, at USD 82.8 Million 26.9% growth in 3Q08 net revenues over 3Q07, reaching USD 132.4 million

Wilson Sons Limited ("the Company" or "Wilson, Sons") reports today results for 3Q08 and 9M08. Through its subsidiaries, the Company (Bovespa: "WSON11 BZ") is one of Brazil's largest providers of integrated port and maritime logistics and supply chain solutions. With a business track record of over 170 years, the Company has developed an extensive national network and provides a comprehensive set of services related to domestic and international trade, as well as to the oil and gas industry. Its principal activities are divided into the following business segments: port terminals, towage, logistics, shipping agency, offshore, and non-segmented activities.
3Q08 net revenues were up by 26.9% over 3Q07, reaching USD 132.4 million. Year-to-date, net revenues improved by 32.7%, reaching USD 380.8 million. Wilson Sons' strong performance in 3Q08 and 9M08 derived, mainly, from activities in port terminals, logistics, and the offshore businesses, which, combined, represented almost 60% of The Company's total net revenues in the quarter. Its shipyard also contributed positively to 3Q08 results, from shipbuilding activities for third parties.
3Q08 consolidated adjusted EBITDA was up by 3.1%. Year-to-date, EBITDA results ended significantly higher (+25.1% compared to 9M07), helped mainly by a better mix of services and improved overall performance year-over-year, mainly at the Company's port terminals, towage and offshore businesses.
3Q08 and 9M08 CAPEX figures reached USD 23.2 million and USD 59.7 million, respectively, mainly invested in the acquisition of new equipment, construction activities for new tugboats, capacity expansion at Tecon Rio Grande, and leasing of equipment for logistics.
The Company's full Earnings Release is available on line at www.wilsonsons.com/ir