Saturday, January 28, 2017
Fairfax India Holdings acquires 51% stake in container port operator
Fairfax India Holdings Corporation is pleased to announce that, through its wholly-owned subsidiary (collectively, "Fairfax India"), it has entered an agreement to invest INR 2 billion (approximately $30 million at current exchange rates) for a 51% equity ownership in Saurashtra Freight Private Limited. Saurashtra Freight will use the proceeds to acquire the Container Freight Station business from Saurashtra Infra and Power Private Limited ("Saurashtra Infra") and for future expansion. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2017.
Saurashtra Infra runs the largest CFS at Mundra Port (Gujarat), the 2nd largest and fastest growing port in India. Saurashtra Infra's CFS provides services such as moving of containers to and from the port, stuffing/destuffing of containers, cargo storage and transportation of cargo to the end customer as well as storage, maintenance and repair of empty containers.
Fairfax India is the vehicle billionaire Prem Watsa created to take advantage of the multi decade growth that is expected to take place in India. This is a long term investment for me and I continue to hold for the long term.