Allcargo Logistics to acquire controlling stake in Gati for Rs 4.16 billion

Allcargo Logistics Limited has agreed to acquire a controlling stake in express logistics company Gati Limited for as much as Rs 4.16 billion ($58.4 million). Allcargo has inked pacts to acquire a 19.43 per cent stake in Gati from its promoters and through a preferential issue for a total of almost Rs 1.78 billion. As per the deal, Gati’s promoters will sell an 8.51 per cent stake to Allcargo. Gati will also issue preference shares equivalent to a 10.92 per cent stake to Allcargo. The share sales will happen at Rs 75 apiece. Allcargo has also made an open offer to Gati’s public shareholders to buy another 26 per cent for up to Rs 2.38 billion. In all, Allcargo will acquire about 45 per cent stake assuming full participation by public shareholders in the open offer.