Integrated logistics solutions provider Allcargo Logistics Ltd bought a controlling stake in Gati Ltd for around Rs 416 crore, entering the express logistics space, Livemint reported. Allcargo provides a comprehensive range of services, such as multimodal transport operations, container freight station operations, or inland container depot operations, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks. Gati has a wide-ranging customer base across corporate India, e-commerce companies, as well as small and medium enterprises (SMEs). It has a presence across 727 districts and a service network that reaches out to 19,000 PIN codes across the country. As part of the transaction, Allcargo has signed a share purchase agreement with Gati’s promoter group to acquire up to 10.3 million shares at Rs 75 apiece. Allcargo will also subscribe to a preferential issue of 13.3 million equity shares of Gati at Rs 75 apiece. Consequent to the closure of the two agreements, Allcargo will own a 19.43 per cent stake in Gati. Allcargo will spend Rs 178 crore for acquiring the stake. Additionally, Allcargo will look to acquire another 26 per cent stake from Gati’s public shareholders through an open offer, which too will be priced at Rs 75. If it manages to acquire the entire 26 per cent, Allcargo will end up spending another Rs 238 crore, taking its total acquisition to spend to Rs 416 crores. The deal is expected to close by 30 March 2020.
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