Allcargo Logistics Limited announced that it has completed the acquisition of 1.50 lakh shares or 30% stake in Gati‐Kintetsu Express (GKEPL). The acquisition is for a consideration of Rs 406.71 crore.
Allcargo-led arm already holds a 70% stake in GKEPL.
The deal outlines the purchase of 1.3 lakh shares, aggregating to a 26% stake, from KWE‐Kintetsu World Express (S). The remaining 4% stake, consisting of 20,000 shares will be acquired from KWE Kintetsu Express India.
On the completion of the above transaction, Allcargo now holds a 100% stake in GKEPL, in consolidation with Gati. Furthermore, the company had previously purchased a minority stake in its contract logistics partner, Allcargo Supply Chain.
This transaction has been completed in accordance with the terms of the SPA signed between the parties earlier in March 2023.
Allcargo's Contract logistics division manages inventories and provides third-party supply chain solutions to prominent Indian and international customers in the chemical, automotive, e-commerce, and other industries.
These acquisitions are consistent with the company's strategy to focus on high-growth opportunities in India's express and contract logistics businesses. This move will also help to simplify the corporate structure. Allcargo is well-positioned to benefit from contract logistics and express distribution synergies.
Following this development, Allcargo Logistics was trading 0.95% higher at Rs 297.15, against the previous close of Rs 294.35 on NSE.
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