Blackstone-backed logistics company Allcargo Global Logistics Ltd has acquired business rights and controlling stake in Hong Kong based companies engaged in Non Vessel Owning Common Carrier (NVOCC) business in China and other parts of eastern regions for an undisclosed amount.

It said in a regulatory disclosure that the acquisition would strengthen the company's operating profit by adding approximately $ 3.53 million on a yearly basis.

The firm that also has the backing on New Vernon Private Equity, has also said that to augment the project cargo movement business, it has acquired two vessels of the capacity of approximately 6,500 dead weight each. This transaction will save the company cost of ship chartering and hiring besides helping it plan and execute project cargo movements in efficient and effective manner and would further help to capitalise the opportunities in the Indian sub-continent including coastal movement.

The Mumbai-based logistics firm had early this year raised over Rs 104 crore selling shares to qualified institutional buyers. This is part of a much bigger fund raising plan where the company is looking to scoop upto $150 million (around Rs 700 crore) through the issue of shares.

In September 2009, New York-based private equity major Blackstone Group invested $23 million (Rs 142 crore) in the company, raising its stake to over 11% from 5.26% stake earlier. Earlier in January 2006, New Vernon had picked up 6% stake in Allcargo for Rs 60 crore.

Apart from expanding its presence organically, the company has been acquiring companies in different geographies. It acquired global logistic giant ECU Line and Hindustan Cargo Ltd in 2006 and 2007 respectively, expanding its presence across 59 countries in the world.

Earlier, a subsidiary of Allcargo Global Logistics had acquired Temasek’s minority stake in container-freight stations’ operator Gateway Distriparks.

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