Bulker operator and logistics group Delta Corp has told TradeWinds it still plans to go public.
The news follows the failure of its reverse merger with Coffee Holding, a Nasdaq-listed coffee roasting company, almost two years after the agreement for the transaction was signed.
Delta chief executive Mudit Paliwal blamed the breakdown on a vote in April by Coffee Holding shareholders, which he said failed to stir a sufficient base of support for the potential business combination.
“At the time of the expiration of the [Coffee Holding] proxy solicitation, the vote in favour of the merger was two to one,” he said.
“Unfortunately, because of the severe fragmentation of the [Coffee Holding] shareholder base, we were unable to secure the requisite quorum.”
In an internal email seen by TradeWinds, Delta CFO Joseph Nelson said: “The challenges of securing a sufficient turnout from their dormant shareholder base proved to be time-consuming, costly and with an uncertainty of success.”
Delta’s management and board want to try again with another counterparty, Nelson said in the email, which was sent to staff after the merger breakdown was confirmed on Monday.
“Rest assured that since the vote in April, we have left no stone unturned in securing a public listing for Delta,” Nelson wrote.
“To that end, we are running parallel paths to a US listing, each having more efficient closing prospects and a much greater chance of success.”
Delta could potentially achieve a public listing before the end of the third quarter this year if any of these options are successful, the email stated.
Nelson did not supply any information on the specific pathways being explored.
Delta said it has “strategically positioned itself to pivot” from a third-party logistics provider to becoming a fifth-party logistics (5PL) provider in the future.
5PL companies leverage technology to manage entire supply chain networks by integrating and coordinating the services of various logistics providers.
The company said it aims “to offer more integrated and technology-driven logistics solutions” to customers with the new strategy.
Delta has already made investments in some of the data platforms and ancillary tech that would facilitate such a transition.
The group has been active in acquiring other logistics businesses over the past couple of years, particularly through distressed deals.
Delta originated as a bulker operator after around 20 key staff — including chief executive Paliwal — resigned from Norvic Shipping in 2019.
Since then, the group’s activities have expanded to cover the entire supply chain for dry bulk cargoes, from transshipment to port logistics, ocean transportation, warehousing and delivery to receivers.
Delta bought Noah Ship Management in August 2021.
This was followed a year later with the purchase of Vishwaa Carriers, a mine-to-port transportation services firm, as well as collapsed bunker trader GP Global.
Delta also has made inroads into zero-emission road logistics, as demonstrated by two deals signed last year.
It bought a majority stake in Three Wheels United, a tech-driven financier of light electric vehicles in emerging markets last year and also invested in Zyngo, a last-mile delivery provider in India that uses electric vehicles.
