After Transindia Real Estate agreed to further divest a 10% ownership in each of five Allcargo subsidiaries and a 100% position in Allcargo Multimodal to Blackstone on June 6, shares of Allcargo Logistics increased by 3%.
In order to divide the company into three listed corporations, Allcargo Logistics, Allcargo Terminals, and Transindia Real Estate, the Allcargo Logistics reorganization plan calls for the separation of two more businesses. Shares of the business were up 2.1 percent to Rs 282.05 at 10:15 a.m. on the BSE.
Shares of the business were up 2.1 percent to Rs 282.05 at 10:15 a.m. on the BSE.
Allcargo Logistics and BRE Asia Urban Holdings Ltd., which is controlled by funds managed or advised by affiliates of Blackstone, have signed definitive transaction contracts. A portion of Allcargo Logistics’ warehouse business was intended to be moved as a result.
According to the terms of the agreement between the two businesses, Allcargo Logistics would no longer have sole control over several subsidiaries that are engaged in the warehousing business after the deal was completed. Allcargo Logistics would continue to hold a modest ownership interest in these businesses.
Allcargo Logistics would continue to hold a modest ownership interest in these businesses.
The subsidiaries of Allcargo Logistics were transferred to Transindia Real Estate in accordance with the plan approved by NCLT. A proposal to sell a portion of Transindia Real Estate’s stake in specific locations—namely, Malur, Venkatapura, Kalina, Panvel, ALIPPL, and their fully owned subsidiary Allcargo Multimodal—was considered and authorized during the board meeting. The percentage of stakes in both of those locations and Allcargo Multimodal that would be divested together is 10%.
