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Blackstone partners with Allcargo logistics

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Board of Allcargo Logistics approves executive of transaction docs with BRE Asia Urban Holdings

The Board of Allcargo Logistics at its meeting held on 13 January 2020 has approved the execution of definitive transaction documents with BRE Asia Urban Holdings, an entity controlled by funds managed or advised by affiliates of The Blackstone Group Inc. (Blackstone), which is a globally renowned real estate private equity investor, for transfer of a part of the warehousing business of the Company.

Pursuant to the transaction documents, Blackstone will make an investment in the company's subsidiaries through a combination of equity and debentures upto Rs.380 crore (Transaction). The partnership between Blackstone and the Company proposes to make further investment in the future to develop industrial and logistics parks across certain key markets of India.

The Transaction is expected to conclude in a phase wise manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones as prescribed in the transaction documents which will be executed by and among Blackstone, the Company and certain subsidiaries of the Company for carrying out the business of warehousing.

Post conclusion of the Transaction, the Company will cease to have sole control over certain subsidiaries engaged in the warehousing business, and will retain a minority stake in such subsidiaries.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 13 2020. 16:53 IST