Allcargo Logistics Ltd said in a BSE filing that it announced on Friday that it had completed the acquisition of 1.5 lakh shares, or 30% stake, in Gati-Kintetsu Express (GKEPL) for Rs 406.71 crore.

Gati, a subsidiary of Allcargo, already holds a 70% stake in GKEPL, India’s leading express logistics company.

Shashi Kiran Shetty, founder and chairman of Allcargo Group, said: “The acquisition of shares will provide full ownership and control of Allcargo Logistics and its subsidiary Gati and facilitate the company’s strategic decision-making.”

“This will help us enhance our service delivery capabilities, achieve further development, and usher in the next growth stage. We expect the synergy between contract logistics and express delivery to be further strengthened, further consolidating the Group’s presence in the domestic logistics sector position,” he added.

The deal includes the acquisition of 1.3 lakh shares (26%) from KWE-Kintetsu World Express (S) and 20,000 shares (4%) from KWE Kintetsu Express India, the company said.

Yasuyuki Tani, Regional Managing Director, South East Asia and Oceania, KWE, said: “KWE as a group, and more specifically KWE India, has developed a good relationship with Gati and Gati-Kintetsu over the past 10 years. This relationship will now become an even more strategic partnership in domestic logistics operations in India.”

Following the transaction, Allcargo and Gati now hold 100% of GKEPL and have complete control. The company said the transaction’s closing follows the SPA signed by the parties earlier in March 2023.

Among other things, the company had earlier acquired a minority stake in its partner’s contract logistics business under the Allcargo supply chain, it added.

Allcargo’s contract logistics business manages inventory and provides third-party supply chain solutions to large Indian and international customers in the chemical, automotive, e-commerce and other industries.