Temasek to pick up 28% stake in First Flight

New Delhi: Temasek is picking 27.74% equity stake in courier and express delivery firm First Flight in a deal worth Rs 107.5 crore. Mumbai-based First Flight, which is a public limited unlisted company promoted by the Saboo family, is the second largest domestic courier company with revenues of around Rs 300 crore. It is the largest domestic private equity deal in the courier and logistics space.
As per the deal, Temasek would be picking 41.27 lakh shares through multiple tranches through a preferential issue. The shares would be allotted at Rs 260.47. The funds being raised would be used by First Flight for expansion of its aviation and warehousing businesses. Temasek which is an investment arm of the government of Singapore is routing its investment in the courier company through a Mauritius-based entity Dunearn Investment.
It is learnt that as per the agreement, Temasek would have the right to nominate proportionate number of nominees in the board of First Flight which would have eight members initially.
08/06/07 Vivek Sinha/Economic Times

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Categories: Cargo Jun 2007, Foreign Jun 2007