Allcargo Logistics on Friday mentioned that it has accomplished the acquisition of 1.50 lakh shares, or 30 per cent stake, in Gati-Kintetsu Specific (GKEPL) for ₹406.71 crore Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL.
The deal contains buying 1.3 lakh shares (26 per cent) from KWE-Kintetsu World Specific (S) and 20,000 shares (4 per cent) from KWE Kintetsu Specific India.
With the conclusion of this transaction, Allcargo, together with Gati, now holds 100 per cent stakes in GKEPL and assumes full management. The consummation of this transaction is alongside the road of the SPA signed between the events earlier in March 2023.
“These acquisitions are in step with the corporate’s technique to sharpen the give attention to excessive progress alternatives in specific and contract logistics enterprise in India. This transfer will even facilitate simplification of the company construction. Allcargo is nicely positioned to derive synergies from contract logistics and specific distribution,” mentioned the corporate in its assertion.
Along with this, the corporate had earlier purchased out minority stake of its associate within the contract logistics enterprise underneath Allcargo Provide Chain.
“The share Buy will provide Allcargo Logistics, together with its subsidiary Gati, full possession and management and facilitate strategic decision-making within the firm. This can assist us improve service supply capabilities to make additional progress and usher within the subsequent section of progress. Going ahead, we anticipate a stronger synergy between contract logistics and specific distribution to additional strengthen group’s place within the home logistics house,” mentioned Shashi Kiran Shetty, Founder & Chairman, Allcargo Group.
Allcargo Logistics’ scrip ended 1.02 per cent up at ₹297 on BSE.
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Up to date: 09 Jun 2023, 03:42 PM IST
Supply: Live Mint