TCI Express to acquire 7.7 per cent stake in Japanese firm

TCI Express Limited has informed the bourses that it is in the process of acquiring a stake in Uketoru, Japan. The investee company is an Express B2C technology company. For TCI Express, it is a strategic investment for its business growth.

The said acquisition process is expected to get completed by April 30, 2019. TCI Express would acquire 7.70 per cent of the total share capital of the investee company. The aggregate cost of acquisition for the stake is around 20 million Yen which would be paid in cash. The management has informed that the acquisition is not under the purview of related party transaction and none of the promoters or the promoter group have any interest in the investee company.

Uketoru Company Limited is a Japan-based company engaged in the Express B2C technology business. It was incorporated on April 27, 2015. Its turnover in FY17 and FY18 stood at 3,20,000 Yen and 13,65,635 Yen, respectively.

TCI Express is an India-based company engaged in offering transport, storage, warehousing and support services for transportation. The compass offers express distribution and single window door-to-door solution to customers.

The stock of TCI Express opened at Rs. 731.75 per share on Wednesday. During the morning trading session, it jumped up by 4.6 per cent to make intra-day high of Rs. 766.20 from its previous close of Rs. 732.75 per share.