Allcargo Logistics Limited, a part of The Allcargo Group, has completed acquisition of 1.50 lakh shares, or 30 per cent stake, in Gati-Kintetsu Express (GKEPL) for ₹406.71 crore. Allcargo’s subsidiary, Gati, already holds 70 per cent 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 per cent) from KWE-Kintetsu World Express (S) and 20,000 shares (4 per cent) from KWE Kintetsu Express India. With the conclusion of this transaction, Allcargo, along with Gati, now holds 100 per cent in GKEPL and assumes complete control.
Full ownership
“It has been a fruitful association with KWE. The Share Purchase will offer Allcargo Logistics, along with its subsidiary Gati, full ownership and control and facilitate strategic decision-making in the company,’‘ Shashi Kiran Shetty, Founder & Chairman, Allcargo Group, said in a release on Friday. “This will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth. Going forward, we expect a stronger synergy between contract logistics and express distribution to further strengthen group’s position in the domestic logistics space,’‘ he added. Yasuyuki Tani, Regional Managing Director, South-East Asia and Oceania Region, KWE, said, “KWE as a group and more specifically KWE India shared excellent relationship with Gati and Gati-Kintetsu over the past 10 years. This relationship will now be more strategic partnerships in domestic logistics operations in India.’‘ 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. 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 a minority stake of its partner in the contract logistics business under Allcargo Supply Chain.