SpiceJet decides to transfer its logistics business to SpiceXpress

SpiceJet has announced the transferring of its cargo and logistics services on a slump sale basis along with all related assets and liabilities, including, knowhow, trademark, licenses, franchises, customer contracts, distribution network etc. to its subsidiary SpiceXpress and Logistics (SpiceXpress) subject to the approval of shareholders and also such other approvals as may be required.

As per the last quarterly segment reporting by the Company ended 30 June 2021, the logistics arm continued with its strong growth story reporting yet another profitable quarter with a Net Profit of Rs 30 crore. The revenue increased by a whopping 285% to Rs 473 crore for the reported quarter as compared to Rs 166 crore in the same quarter last year. The logistics arm today has a network which spans over 68 domestic and over 110 international destinations including US, Europe and Africa.

The logistics business has been valued at Rs 2,555.77 crore based on an independent valuation exercise carried out by the Company and the purchase consideration for the same shall be discharged by SpiceXpress by issuance of shares of SpiceXpress to SpiceJet, subject to all approvals as may be required. It is expected that SpiceXpress will operate as a separate entity upon transfer of business on or around 01 October 2021.

While SpiceXpress will operate as a separate entity, SpiceJet will continue to provide certain transportation services, ground and logistics support, management services, sharing and provisioning of resources etc. to SpiceXpress.

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