Allcargo Logistics completes acquisition of 30% stake from KWE in Gati subsidiary
The deal includes purchasing 1.3 lakh shares from KWE-Kintetsu World Express and 20,000 shares from KWE Kintetsu Express India.
PremiumAllcargo Logistics on Friday said that it has completed the acquisition of 1.50 lakh shares, or 30 per cent stake, in Gati-Kintetsu Express (GKEPL) for ₹406.71 crore Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL.
The deal includes purchasing 1.3 lakh shares (26 per cent) from KWE-Kintetsu World Express (S) and 20,000 shares (4 per cent) from KWE Kintetsu Express India.
With the conclusion of this transaction, Allcargo, along with Gati, now holds 100 per cent stakes in GKEPL and assumes complete control. The consummation of this transaction is along the line of the SPA signed between the parties earlier in March 2023.
“These acquisitions are in line with the company’s strategy to sharpen the focus on high growth opportunities in express and contract logistics business in India. This move will also facilitate simplification of the corporate structure. Allcargo is well positioned to derive synergies from contract logistics and express distribution," said the company in its statement.
In addition to this, the company had earlier bought out minority stake of its partner in the contract logistics business under Allcargo Supply Chain.
"The share Purchase will offer Allcargo Logistics, along with its subsidiary Gati, full ownership and control and facilitate strategic decision-making in the company. This will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth. Going forward, we expect a stronger synergy between contract logistics and express distribution to further strengthen group’s position in the domestic logistics space," said Shashi Kiran Shetty, Founder & Chairman, Allcargo Group.
Allcargo Logistics' scrip ended 1.02 per cent up at ₹297 on BSE.
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