Allcargo Logistics Increases Stake in Gati-Kintetsu Express, Shares Up 5%

Allcargo Logistics will acquire Kintetsu World Express' stake in the joint venture with Gati.

Shares of Allcargo Logistics rose 5% on March 27 after the company said it would acquire a 30% stake (or 150,000 shares) in Gati-Kintetsu Express for Rs 406.71 crore.

The Mumbai-based logistics company has received a green signal from the board to acquire a 30% stake in Gati Kintetsu Express from its Japanese joint venture partner Kintetsu World Express (KWE) Group. Allcargo Group company Gati holds 70% of the joint venture, and KWE has the remaining 30%.

Additionally, the deal also includes the purchase of 130,000 shares (26%) from KWE-Kintetsu World Express (S) and 20,000 shares (4%) from KWE Kintetsu Express, the company added.

Shares of Allcargo Logistics were up 2.9% at Rs 356.6 on the BSE at 10:51 am.

Earlier this month, Allcargo Logistics acquired ACCI’s remaining 38.87% stake in the contract logistics unit. In February, the company signed a share purchase agreement with BRE Asia Urban Holdings to acquire 90% of the equity capital and optional convertible bonds of Madanahatti Logistics and Industrial Parks.

Also, the Mumbai-based logistics company acquired a 75% stake in German freight consolidator Fair Trade in January. The company mentioned the sale of its smaller non-core customs clearance business.

In the December quarter, the company reported a 30% drop in consolidated net sales to Rs 4,099.02 crore, while net profit fell 53% to Rs 155.92 crore.

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