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Allcargo Logistics has completed acquisition of 1.50 lakh shares, or 30 percent stake, in Gati]Kintetsu Express (GKEPL) for Rs 406.71 crore.
Allcargofs subsidiary, Gati already holds 70% stake in GKEPL, which is a leading express logistics player in India, with presence in Surface express distribution, Air express distribution and Supply chain management solutions. 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 ExpressIndia.
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.
In addition to this, the company had earlier bought out minority stake of its partner in the contract logistics business under Allcargo Supply Chain.
In addition to this, the company had earlier bought out minority stake of its partner in the contract logistics business under Allcargo Supply Chain.
These acquisitions are in line with the companyfs strategy to sharpen the focus on high growth opportunities in express and contract logistics business in India. This move will also facilitate simplification of the corporate structure. Allcargo is well positioned to derive synergies from contract logistics and express distribution.
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