Allcargo surges on acquisition of US-based logistic firm
The stock rallied 13% to Rs 101 on the National Stock Exchange.
Allcargo Logistics has surged nearly 13% to Rs 101 on NSE after the company has acquired Econocaribe Consolidators, a US-based logistics company for about $50 million.
The company said that the acquisition will strengthen and increase presence in the US market. Allcargo acquired Econocaribe through its Belgium-based subsidiary ECU Line, which collects small cargo and aggregates these into a full container load, known as an LCL (less than a container load) company.
Econocaribe Consolidators is the third largest non-vessel operating common carrier (NVOCC) in the US. An NVOCC does not own a vessel but acts as a carrier.
The deal will be funded by loans raised in Belgium (at a low interest rate of 3%) and from internal accruals of Ecu Line, the company said.
The stock opened at Rs 90.80 and hit a low of Rs 87 so far. A combined 81,300 shares change hands on the counter till 1415 hours on NSE and BSE.
The company said that the acquisition will strengthen and increase presence in the US market. Allcargo acquired Econocaribe through its Belgium-based subsidiary ECU Line, which collects small cargo and aggregates these into a full container load, known as an LCL (less than a container load) company.
Econocaribe Consolidators is the third largest non-vessel operating common carrier (NVOCC) in the US. An NVOCC does not own a vessel but acts as a carrier.
The deal will be funded by loans raised in Belgium (at a low interest rate of 3%) and from internal accruals of Ecu Line, the company said.
The stock opened at Rs 90.80 and hit a low of Rs 87 so far. A combined 81,300 shares change hands on the counter till 1415 hours on NSE and BSE.