Allcargo Logistics gains 5% through a stake in Gati-Kintetsu Express

Allcargo Logistics shares gained five per cent on March 27 after the company announced it would buy a 30 per cent stake (or 1.50 lakh shares) in Gati-Kintetsu Express for Rs 406.71 crore.

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

In addition, the deal includes the purchase of 1.3 lakh shares (26 percent) of KWE-Kintetsu World Express (S) and 20,000 shares (4 percent) of KWE Kintetsu Express, the company added.

As of 10:51 am, shares of Allcargo Logistics on the BSE were trading up 2.9 per cent at Rs.356.6.

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

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

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

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