Canada's CDPQ to buy Rs 1,000 crore worth stake in TVS Logistics

NEW DELHI: Canada-based pension fund manager Caisse de dépôt et placement du Québec ( CDPQ) today said it will acquire a "sizable minority stake" in TVS Logistics Services for Rs 1,000 crore.

Under the agreement, CDPQ will invest over Rs 1,000 crore ($155 million) to acquire a sizeable minority stake in TVS LSL, a privately held subsidiary of the TVS Group, a joint statement said.

However, the exact quantum of the stake was not mentioned by both the companies.

Following this transaction, existing investors Goldman Sachs and KKR will fully exit their investments in TVS LSL, it said, adding that CDPQ will purchase most of their joint stake, while TVS family members and management will acquire the remainder.

Beyond this equity investment, CDPQ is ready to commit significant additional capital to finance transformative acquisitions and support the expansion of TVS LSL in India and globally, it said.

"We look forward to continuing this evolution and building on our successes through a fruitful partnership with CDPQ," said R Dinesh, Managing Director, TVS Logistics Services Ltd.

Efficiency in delivering goods to customers is a key driver of business performance and TVS Logistics is well positioned to seize growth opportunities resulting from recent tax reforms in India and global demand for modern logistics services, CDPQ Chief Executive Officer Michael Sabia said.

"CDPQ's strategy is to identify world-class management teams and to support them over the long term. This is precisely what we intend to do with TVS Logistics as it expands in its home market and abroad," Sabia said.