Shapoorji Pallonji approves termination of JVA on Shapoorji Pallonji Forbes Shipping with Sterling Investment Corporation; Stock soars ~4%

24 Feb 2022 , 09:18 AM

Forbes & Company Limited (Shapoorji Pallonji) has approved termination of joint venture agreement with Sterling Investment Corporation G. S. Enterprises in relation to Shapoorji Pallonji Forbes Shipping effective from close of business hours on February 28, 2022.

“The Board of Directors of the Company at their meeting held on February 23, 2022, have approved the termination of the Joint Venture Agreement dated December 1, 2014, with mutual consent with Sterling Investment Corporation Private Limited, G. S. Enterprises in relation to Shapoorji Pallonji Forbes Shipping Limited (SPFSL) with effect from close of business hours on February 28, 2022.

Consequently, w.e.f. March 1, 2022, SPFSL shall cease to be a subsidiary of the Company,” company said in a filing on Wednesday.

During early morning trade on Thursday, Forbes & Company Ltd was trading at Rs430 per piece up by Rs15.9 or 3.84% from its previous closing of Rs414.10 per piece on the BSE.

The company will sell entire shareholding of Forbes Facility Services Private Limited to SILA Solutions for a consideration of Rs42 crore.

“The Board of Directors of the company at their meeting held on February 23, 2021 has approved entering into binding term sheet for sale of its entire shareholding in Forbes Facility Services Private Limited (FFSL), a wholly owned subsidiary of the Company to SILA Solutions Private Limited.

SILA Solutions Private Limited is engaged in real estate development, project management and facilities management services across India. DAM Capital acted as the financial advisor to this proposed transaction for the sale of the entire shareholding in FFSL,” company said in a filing.

As on March 31, 2021, the total income of FFSL was Rs152. 93 crore and total profit for the financial year 2020-2021 was Rs2. 98 crore.