Allcargo increases stake in Gati to 20.8%

January 07 , 2020

Allcargo Logistics increased its stake in Gati to 20.8% by acquiring additional 7.5% stake, thus consolidating its position as the single largest shareholder in the express logistics company. Through preferential allotment in line with the approval by Gati’s shareholders at the EGM on 7th January 2020 as well as open market purchases, Allcargo already acquired close to 13% stake last week. 

Allcargo has bought an additional 91 lakh shares in Gati through two different transactions. The company directly bought 5.16% stake from the Gati promoters, pursuant to the share purchase agreement and acquired another 2.31% stake through open market purchases.

“Allcargo is on course to complete the transaction to acquire 44.5% stake in Gati. We are abiding by the regulatory and compliance norms while carrying out the transaction. With this acquisition, we will gain a leadership position in the domestic express transportation segment and develop capabilities to offer end-to-end transportation to our valued customers,” said Shashi Kiran Shetty, Chairman, Allcargo Logistics.

The recent purchase of shares from the promoters marks the end of the second phase of a three-way deal that Allcargo intends to complete in due course.

 

 

 

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