Allcargo Logistics rose 1.33% to Rs 95.40 while Gati fell 2.20% to Rs 64.55 after Gati offloaded a significant equity stake to Allcargo Logistics.
Allcargo Logistics has signed a share purchase agreement with Gati's promoter group to acquire up to 1.03 crore shares at Rs 75 each. Allcargo will also subscribe to a preferential issue of 1.33 crore equity shares of Gati at Rs 75 each. Consequent to the closure of the two agreements, Allcargo will own a 19.43% stake in Gati.Additionally, Allcargo will look to acquire another 26% stake from Gati's public shareholders through an open offer, which too will be priced at Rs 75. The deal is expected to close by 30 March 2020. The announcement was made after market hours yesterday, 6 December 2019.
Meanwhile, the S&P BSE Sensex was up 89 points or 0.22% to 40,868.14.
Allcargo Logistics is engaged in providing integrated logistics solutions. It offers logistics services across multi-modal transport operations, inland container depot, container freight station operations, contract logistics operations, and project and engineering solutions.
Gati is engaged in the express distribution and supply chain solutions. The company's segments include express distribution and supply chain, which covers integrated cargo services, such as road, rail and air transportation; shipping, which covers sea transportation and fuel stations.
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