Hong Kong-based global supply chain manager Li & Fung has sold its 26 per cent holding in Indian logistics company Future Supply Chain Solutions.
Its shares have been picked up by private equity firm SSG Capital Management, which also bought a 14 per cent stake from largest shareholder Future Retail, giving it a 40 per cent holding for Rs 580 crore (US$87 million).
Fung Capital, the PE investment arm of the families of Victor and William Fung that
controls Li & Fung in Hong Kong, received about $57 million for its stake, acquired in 2009 for $30 million.
This is the second pull-back from India for the Fung Group, which in February shelved a planned joint venture with India’s Future Group to import and wholesale goods into India.
Future Retail still holds a controlling interest with a 57 per cent stake in the company, which has been valued at Rs 1450 crore.
Hong Kong­-based SSG Capital, founded by Shyam Maheshwari, has about $2 billion of assets under management in the Asia ­Pacific.
Formerly Future Logistics, Future Supply Chain Solutions has extended its services to eCommerce, and for the year ended March 2015 made a profit of Rs 25 crore on revenues of Rs 408 crore.