 "FTA, Free Trade Agreement, Trade Ties, Deals, Partnership")
Allcargo Logistics Ltd on Friday announced that it had completed the acquisition of 150,000 shares, or 30 per cent stake, in Gati‐Kintetsu Express (GKEPL) for Rs 406.71 crore, the company said in a BSE filing.
Allcargo’s subsidiary, Gati already holds 70 per cent stake in GKEPL, which is a leading express logistics player in India.
Shashi Kiran Shetty, founder and chairman, Allcargo Group said, "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 the group's position in the domestic logistics space," he added.
The deal includes the acquisition of 130,000 shares (26 per cent) from KWE‐Kintetsu World Express (S) and 20,000 shares (four per cent) from KWE Kintetsu Express India, the company said.
Yasuyuki Tani, regional managing director, Southeast Asia and Oceania region, KWE said, "KWE as a group and more specifically KWE India shared an excellent relationship with Gati and Gati‐Kintetsu over the past 10 years. This relationship will now be more strategic partnerships in domestic logistics operations in India."
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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, said the company.
In addition to this, the company had earlier bought out a minority stake of its partner in the contract logistics business under Allcargo Supply Chain, it added.
Allcargo’s Contract logistics business is engaged in managing inventories and providing third-party supply chain solutions to marquee Indian and international customers across chemical, auto, e‐commerce and other industries.
