Allcargo Logistics forays into express logistics market with stake acquisition in Gati
Mumbai headquartered multinational integrated logistic service company, Allcargo Logistics, made a public announcement that it will acquire stake in Gati Ltd. for Rs. 416 crores. The acquisition will be further followed by an open offer for the remaining stake.
The company, in its press release, said that it is going to acquire around 44 percent stake in Gati for nearly Rs. 416 crores, which marks its entry into the express logistics market. The said deal will be executed in multiple phases. In the first phase, Allcargo will buy over 1.03 crore shares, along with the subscription to a preferential issue of over 1.33 crore shares. This will collectively make nearly 18 percent shares, which are being held by promoters and the promoter group of Gati Ltd. The average price decided is Rs. 75 per share for the transaction.
In the second phase, the company will buy additional 3.17 crore shares, which represent 26 per cent of total paid up equity capital via open offer. The price stated by the company stands at Rs. 75 per share of Gati Ltd., which is at nearly 15 per cent discount from the market price,today.
Currently, Allcargo Logistics is trading with 2 per cent gains at Rs. 96 while Gati Ltd. is trading down by 3 per cent at Rs. 64 on BSE.