SampR and MMB advise Vikram logistics to acquire ETA Engineering business

ETA Engineering has sold its multimodal logistics business in India operated under the Freightstar brand to Vikram Logistic and Maritime Services, a subsidiary of AIM-listed Infrastructure India plc, for Rs. 141 crore (£18 million or $14,42 million) that includes cash payment and assumption of debt..S&R Associates advised ETA with a team led by Partner Rajat Sethi along with Mohit Gogia, Prashant Roy and Radhika Agrawal..MMB Legal advised Vikram Logistics with a team led by Partners Mahesh Madan Bhat and Talha Salaria along with Aparna Nair, who recently joined the transactional practice group of MMB Legal from Desai Diwanji, Mumbai..The deal involves a cash payment of £9 million (Rs. 70.3 crore), with Vikram Logistic assuming the debt of another £9 million. The cash payment will be made in instalments over the six months following the completion of the transaction. Vikram Logistic also plans to infuse additional equity of up to £15 million (Rs. 117 crore or $24 million) and fully draw or refinance Freightstar’s committed debt facilities over the course of the next 30 months. This funding will be used to complete the construction of two Freightstar container terminals besides funding the growth and working capital requirements of Vikram Logistic, reports VCCircle..Freightstar was founded by Dubai-based ETA Group and is a logistics services provider with a Category I licence from the Indian Railways, allowing it to operate container trains. Freightstar is developing two multi-modal logistics centres in northern and central India (under Freightstar) and has 11 operating container trains..Infrastructure India Plc had in February acquired Vikram Logistics & Maritime from Guggenheim Partners. Amarchand & Mangaldas acted as the Indian legal counsel to IIP while London based Nabarro advised IIP on the English law aspects. MMB Legal acted as the Indian legal counsel to Guggenheim.. Dealcurry reports, Vikram Logistics provides a broad range of logistics services including trucking, coastal shipping, customs clearing and handling, and bonded warehousing to customers from a range of companies such as CONCOR, Coca Cola, Reserve Bank of India, Credence Logistics, Pearl Harbour, American Power Corporation and Qatar Cargo.