Allcargo Logistics said it has completed the acquisition of 1.50 lakh shares, or 30% stake, in Gati-Kintetsu Express (GKEPL) for Rs 406.71 crore.
Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL.
“With the conclusion of this transaction, Allcargo, along with Gati, now holds 100% 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,” the company said in a release.
The company had earlier bought out minority stake of its partner in the contract logistics business under Allcargo Supply Chain.
The deal includes purchasing 1.3 lakh shares (26 percent) from KWE-Kintetsu World Express (S) and 20,000 shares (4 percent) from KWE Kintetsu Express India, it added.
GKEPL is an express logistics player in India, with presence in surface express distribution, air express distribution and supply chain management solutions.
“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.
Source: Economic Times