Allcargo Logistics Limited, has completed acquisition of 1.50 lakh shares, or 30 percent stake, in Gati-Kintetsu Express (GKEPL) for Rs 406.71 crore. Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL, an 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 Express India. 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.
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.
These acquisitions are in line with the company’s 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.