Also, as part of this preferential allotment process Allcargo, has already infused Rs 100 crore into Gati. With this, the preferential allotment would result in Allcargo acquiring 10.91 per cent stake in Gati, said the release.
After all these transactions, Allcargo now owns around 13 per cent stake in Gati, which makes it the largest shareholder and the entry of Allcargo into the express industry.
Gati has received an overwhelming response from its shareholders for the proposed stake sale to Allcargo Logistics, with over 87 per cent of them voting in favour of the deal, said the Allcargo release.
With this, the Avvashya Group company is well on track to complete the process to acquire 44.5 per cent stake in Gati, the total deal size of which is Rs 416 crore.
As planned, Allcargo has already taken steps to become a minority stake holder in its logistics park business and strengthen its presence in the express industry where it sees stronger growth potential.
Last week, private equity firm Blackstone announced it is investing Rs 380 crore in Allcargo’s logistics park business.
Blackstone will be investing in both equity as well as debt capital of Allcargo’s business, it said.
Allcargo is into multimodal transport operations, container freight station, inland container depot operations, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks.