Allcargo Logistics shares increase 3% after the agreement with Gati
New Delhi, December 6 () Allcargo Logistics shares on Friday rose 3 percent after the company said it will acquire about 44 percent in Gati for almost Rs 416 million rupees, marking its foray into the market for Express logistics
The scrip gained 3.03 percent to close at Rs 97 in the BSE. During the day, it jumped 5 percent to Rs 98.90.
In the NSE, it rose 2.54 percent to close at Rs 96.60.
However, Gati shares fell 4.62 percent to close at Rs 62.95 in the BSE, while in the NSE they decreased 4.69 percent to Rs 62.95.
Under the agreement, Allcargo will first buy more than Rs 1.03 million and subscribe to a preferential issue of more than 1.33 million shares (collectively 18 percent) held by the promoters and the Gati promoter group, including Mahendra Kumar Agarwal, Mahendra Investment Advisors and TCI Finance. and also Gati, at Rs 75 per share.
Then, Allcargo will make an open offer to buy other shares of Rs 3.17 million, representing 26% of the paid-in share capital (post-preference issuance and acquisition of stock options) of Gati retail shareholders a Rs 75 per share, bringing the total value of the deal to around Rs 416 crore, said President Shashi Kiran Shetty. With Gati under its control, Allcargo can offer a range of logistics services, including multimodal transport, container loading stations/interior container depots, engineering projects and solutions, storage, distribution, contract logistics and logistics parks. SUMA ANU ANU