Siva Ventures Limited acquires Norwegian Shipping firm

Siva Ventures Limited acquires Norwegian Shipping firm J.B. Ugland Shipping for Rs. 1,200 Crores

19 Feb 2008
(from India Press Release by Perfect Relations)

Siva Ventures Limited (SVL), the flagship company of the USD 2 Billion Sterling Infotech Group announced the acquisition of the Norwegian shipping firm J.B. Ugland Shipping AS (JBUS) from J.B. Ugland Holding AS for a total consideration of approximately US$ 300 million (INR 1,200 Crores).

The transaction was agreed in January 2008 and closed on 15 February 2008. As part of the transaction the incumbent management of JBUS, led by its CEO Mr. Bjorn Bergsland, will continue to manage the company. And as part of the negotiated deal the company has the rights to use the brand name of JBUS for 3 years and will continue trading under the J.B.Ugland name following the acquisition.

This acquisition will propel the Sterling Group’s business plans within the shipping and logistics industry.

Mr. Sivasankaran, Group Chairman, Sterling Infotech Group, commenting on the rationale for their entry into the shipping industry and this transaction said, “I believe that the shipping industry, especially the bulk commodities segment – both tankers and dry bulk carriers – will increasingly revolve around the broader Asian commodities story. In particular, the bulk shipping tonnage demand from India is likely to see explosive growth on the back of the increased raw material demand for the new power and oil refining projects coming up in India, a large number of which are based on imported raw materials. We believe this transaction brings two of the most critical success factors for exploiting this opportunity – the Sterling Group’s presence and relationships with the businesses in India which will be users of tonnage and the reputation of the JB Ugland name in the global shipping industry combined with the management’s acclaimed skills in the sector.”

Commenting on the transaction, the Chairman of JBUH, Mr. Johan Benad Ugland said “I am very proud of having developed a company attracting interest from a global player such as Siva Ventures. Along with China, we believe India will be one of the main growth engines of the overall world economy in the coming years. In this respect, it will be important for Norwegian companies to further strengthen the business relationships with Indian companies. We believe this transaction contributes to this.”

Standard Chartered Bank, continuing their long association on successful deals with the group, advised SVL on the acquisition. JBUH was advised by Pareto, a leading Norwegian investment bank.