Allcargo Logistics Ltd, an integrated logistics company which is part of The Avvashya Group, has received an in-principle approval from its board of directors for the acquisition of controlling equity stake in CCI Integrated Logistics Pvt Ltd for an undisclosed amount, according to a stock market disclosure.
To integrate such activities of the company, it is also proposed to transfer the business of freight forwarding and contract logistics of the company and that of Hindustan Cargo Ltd, a wholly owned arm of the firm, to CCI.
The deal is, however, subject to determination of valuation by an independent valuer and receipt of necessary statutory, regulatory and shareholders’ approvals.
Akhilesh Gupta, who is the nominee director of Blackstone GPV Capital Partners (Mauritius) on the board of the company, has resigned with immediate effect. Gupta is former head of Blackstone India.
Blackstone holds around 14.4 per cent stake in the firm. The PE firm had invested in the company in early 2008, when the stock market had just started retracing steps after the bull market peaked out. Its investments are currently underwater.
Allcargo Logistics is also backed by New Vernon Private Equity.
Founded in 1993, Mumbai-based logistics firm Allcargo Logistics operates container freight stations and inland container depots and provides multimodal transport solutions. Its services include ocean, air and land logistics, as well as LCL consolidation, FCL forwarding, multi-city consolidation, container freight logistics, warehousing, project cargo movement and cargo consolidation.
As on December 31, 2015, its net worth stood at Rs 2,142 crore while net debt was at Rs 293 crore.
CCI is an integrated logistics provider, specialising in customised surface and air transport solutions.
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