Allcargo Logistics acquires 30% stake in Gati subsidiary
12 Jun 2023
2 Min Read
CW Team
Allcargo Logistics announced that it had successfully acquired 150,000 shares, representing a 30 percent stake, in Gati-Kintetsu Express (GKEPL) for Rs 4 billion.
Gati, a subsidiary of Allcargo, already held a 70% stake in GKEPL, a prominent player in the express logistics industry in India.
Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, mentioned that the share purchase would grant Allcargo Logistics, along with its subsidiary Gati, complete ownership and control over GKEPL, enabling them to make strategic decisions for the company.
He further added, "This acquisition will assist us in improving our service delivery capabilities, propelling us towards the next phase of growth. Moving forward, we anticipate stronger synergy between contract logistics and express distribution, solidifying our position in the domestic logistics sector."
The deal involved the acquisition of 130,000 shares (26%) from KWE-Kintetsu World Express (S) and 20,000 shares (4%) from KWE Kintetsu Express India, as stated by the company.
Yasuyuki Tani, the regional managing director of the Southeast Asia and Oceania region at KWE, expressed, "As a group, KWE, and specifically KWE India, have maintained an excellent relationship with Gati and Gati-Kintetsu over the past decade. This relationship will now transition into a more strategic partnership in domestic logistics operations within India."
Following the completion of this transaction, Allcargo, in collaboration with Gati, now possesses a 100 percent stake in GKEPL, assuming complete control. The company confirmed that this transaction aligns with the previously signed SPA (Share Purchase Agreement) between the parties in March 2023.
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Allcargo Logistics announced that it had successfully acquired 150,000 shares, representing a 30 percent stake, in Gati-Kintetsu Express (GKEPL) for Rs 4 billion.
Gati, a subsidiary of Allcargo, already held a 70% stake in GKEPL, a prominent player in the express logistics industry in India.
Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, mentioned that the share purchase would grant Allcargo Logistics, along with its subsidiary Gati, complete ownership and control over GKEPL, enabling them to make strategic decisions for the company.
He further added, This acquisition will assist us in improving our service delivery capabilities, propelling us towards the next phase of growth. Moving forward, we anticipate stronger synergy between contract logistics and express distribution, solidifying our position in the domestic logistics sector.
The deal involved the acquisition of 130,000 shares (26%) from KWE-Kintetsu World Express (S) and 20,000 shares (4%) from KWE Kintetsu Express India, as stated by the company.
Yasuyuki Tani, the regional managing director of the Southeast Asia and Oceania region at KWE, expressed, As a group, KWE, and specifically KWE India, have maintained an excellent relationship with Gati and Gati-Kintetsu over the past decade. This relationship will now transition into a more strategic partnership in domestic logistics operations within India.
Following the completion of this transaction, Allcargo, in collaboration with Gati, now possesses a 100 percent stake in GKEPL, assuming complete control. The company confirmed that this transaction aligns with the previously signed SPA (Share Purchase Agreement) between the parties in March 2023.
Also read:
Visakhapatnam District gears up for land pooling K Raheja鈥檚 project sells Rs 1,100 cr properties in 90 days
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