The Blackstone Group is investing another $23 million (Rs 142 crore) in Mumbai-based logistics company Allcargo Global Logistics Ltd (AGL). The New York based private equity major is converting the warrants it bought in February 2008, when it also picked up an equity stake in
the firm. Blackstone, which already holds a 5.26% stake in the listed firm, will see its stake rise to more than 11%.
The board of Allcargo has approved the investment, which has been made at a price of Rs 934 per equity share by Blackstone Group and its affiliates. The original agreement entered into by the parties said that the warrants will be converted between Rs 934 to Rs 1,284 for one equity share. Blackstone now seems to be investing at the lower end of the band.
The shares of the logistics player closed at Rs 836 today, up by 1.23% today. The overall commitment by Blackstone to Allcargo stands at $75 million. As part of this transaction, Blackstone will continue to have representation on the Board of Allcargo.
“Blackstone has added tremendous value to the company since we started our relationship 17 months ago and we are exited about this fresh investment by The Blackstone Group into the company. We believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone’s outstanding experience and track record,” said Shashi Kiran Shetty, Chairman and Managing Director of Allcargo.
“This is a successful culmination of our partnership. We are confident that the Indian logistics sector will experience significant growth in the coming years,” said Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Limited.