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Mercantile Ports & Logistics Ltd shares surged on Wednesday, following an update on its legal position regarding the Karanja Terminal & Logistics Pvt Ltd asset in Navi Mumbai, India. The stock was 33% higher in London on Wednesday afternoon at 0.40 pence per share. Mercantile, the operator and developer of a port and logistics facility in Navi Mumbai, said it recently secured interim protection from the Insolvency Appellate Tribunal. This restrains the solicitation of expressions of interest from third parties, it explained, ‘thereby preserving the status quo while legal proceedings are ongoing’. Mercantile also said it has formally offered to redeem the full outstanding debt relating to the asset, and that it is contesting a previous transaction which saw the debt assigned to Prudent ARC. Prudent has appealed to the Supreme Court of India against the interim order, and Mercantile said this appeal is scheduled to be heard on Thursday. Mercantile said it remains committed to defending shareholder value while following due process, and is confident in the strength of its legal position. Major global stakeholders continue to support the company, it added. ‘We have made a credible and lawful offer to redeem the outstanding debt in full,’ said Mercantile Managing Director Pav Bakhshi. ‘Karanja is a strategic infrastructure asset that rightfully belongs to MPL, and we will continue to pursue all legal avenues to protect the Company’s interests and those of its shareholders.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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