Allcargo Logistics Limited has announced its plan to buy its partner’s 38.87 per cent stake for ₹373 crores to boost its stake to 100 per cent in the contract logistics business. The move will also facilitate synergies with the express division operated under Gati. The board approved its exit from the non-core clearance business by selling the total stake held in the entity.
The acquisition price is derived from the agreement signed between AllCargo and ACCI Joint Venture partners in 2016. It will offer them control over management, support strategic decision-making, and enhance service delivery.
Allcargo’s Contract logistics division manages inventories and provides third-party supply chain services to domestic and international customers in auto, chemical, e-commerce and other industries. They own more than 5 million square feet under its management and recorded an EBITDA of ₹31 Crores for the third quarter of the current fiscal.
The board also permitted Allcargo Logistics to sell its 61.13 per cent stake in non-core customs clearance businesses for approximately ₹42 Crores. The company announced an interim dividend of ₹3.25 per equity share for the current financial year.