Allcargo surges post SEBI nod to acquire stake in Gati

Allcargo Logistics on Wednesday informed the bourses that it has received an approval from SEBI to acquire an additional 26 per cent stake in Gati on its open offer to acquire nearly 3.17 crore shares at Rs 75 per share. On full acceptance of the open offer, it will take Allcargo's stake in Gati to 46.83 per cent. The company further said that this will mark the completion of the acquisition process which was initiated on December 5, 2019. The open offer is expected to be launched in March 2020 and closed by April 2020. Preferential allotment and part purchase of promoter shares have also been completed by Allcargo in January 2020. As part of this process, two directors of Allcargo have been appointed on Gati Board.

The acquisition will help to strengthen the company’s domestic business. It will help to consolidate a company’s position as the true end-to-end logistics solutions provider. It will create a lot of value by leveraging the express logistics business of Gati with the company’s current logistics-Courier and Parcel Logistics (CPL) business.

Allcargo Logistics is India-based holding company. The company is engaged in providing integrated logistics solutions. It offers logistics services across multimodal transport operations, inland container depot, container freight station operations, contract logistics operations, etc.

With response to this, the stock of Allcargo logistics opened the gap up at Rs 114.05 apiece as against the previous close of Rs 110.4. Also, the stock of Gati opened on a positive note at Rs 67.9, as against the previous close of Rs 66.55.