M&A

M&A

Allcargo to demerge Container Freight and real estate businesses

Press Release   BusinessLine  

Publicly listed Allcargo Logistics Ltd (ALL) has approved the demerger of its container freight station/inland container depot (CFS/ICD) business into Allcargo Terminals Ltd and the equipment rental, warehousing, logistics parks and other real estate assets into TransIndia Realty & Logistics Parks Ltd (TransIndia). All three companies will have “mirrored” shareholding: ie, ALL shareholders will get 1 share each of Allcargo Terminals and TransIndia Realty & Logistics Parks for every 1 share held of ALL. Following the deal, ALL will focus on international supply chain, express logistics and contract logistics businesses with increased focus on digitization. Post deal, the logistics and real estate spin out TransIndia will continue to serve clients such as Decathlon, Flipkart and Amazon. It will also hold the land for Chennai and Jawaharlal Nehru Port CFS. The business will also hold the shares in the JV with Blackstone.