Mumbai-based Allcargo Logistics on Friday said it has completed the acquisition of remaining 30% stake in Gati Kintetsu Express Pvt. Ltd from its Japanese joint venture partner Kintetsu World Express (KWE) group for Rs 406.7 crore (around $51 million).
To be sure, Gati already had a 70% stake, while KWE had the remaining 30% in GKEPL.
The deal included purchasing 26% from KWE-Kintetsu World Express (S) and 4% from KWE Kintetsu Express India.
"This (move) will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth,” said Shashi Kiran Shetty, founder and chairman, Allcargo Group.
KWE India is the Indian subsidiary of KWE, which is part of the Kintetsu Group, a global conglomerate consisting of 130 affiliated companies.
Bengaluru-headquartered KWE India offers international air freight forwarding, international sea freight forwarding, customs handling, import and export of goods, warehousing, and last-mile delivery to both business-to-business (B2B) and business-to-commerce (B2C) businesses across India.
"KWE as a group and more specifically KWE India shared excellent relationship with Gati and Gati-Kintetsu over the past 10 years. This relationship will now be more strategic in domestic logistics operations in India, said Yasuyuki Tani, regional managing director, Southeast Asia and Oceania Region, KWE.
Founded in 1989, Gati has a presence across Asia, including a nationwide network that covers 99% of the country's districts. The platform’s key business verticals include express distribution, air freight, ecommerce, first and last mile logistics, among others. It also offers B2C services like Laabh, Bike Express, Student Express, and others.
Last November, Allcargo Logistics received board approval to acquire a 30% stake in Gati Kintetsu Express Pvt. Ltd from its Japanese joint venture partner Kintetsu World Express group. The deal value wasn’t disclosed at the time.
Meanwhile, Allcargo Logistics arm Transindia Real Estate, formerly known as TransIndia Realty & Logistics Parks Ltd, is selling some stakes in its logistics parks to funds managed by private equity major Blackstone.
Earlier this month, VCCircle reported that the PE firm had acquired the 10% stake it didn’t already own in five warehousing companies from TransIndia Real Estate Ltd, as per stock-exchange filing by Allcargo Logistics Ltd.
Transindia was created after Allcargo Logistics Ltd demerged part of its warehousing business in 2020. The logistics company has been restructuring its business by selling some assets and carving out and demerging two group companies that it plans to list separately.
Shares of Allcargo Logistics ended Friday’s session with gains of 1%, at Rs 297 apiece on the Bombay Stock Exchange.
