The Board of Directors of Allcargo Global Logistics Limited (“Allcargo”) have approved an investment of 1,513,514 warrants of Rs. 10 each convertible into equal number of equity shares of the Company at a price not less than Rs. 934 per equity share by The Blackstone Group and its affiliates (“Blackstone”) subject to seeking the necessary mandatory and regulatory clearances. Allcargo is a leading Indian private sector logistics operator and a niche global logistics player.
Blackstone will invest an additional $23Mn, in Allcargo taking the total commitment to $75 Mn. As part of this transaction, Blackstone will continue to have representation on the Board of Allcargo.
Commenting on the deal Mr. Shashi Kiran Shetty, Chairman and Managing Director of Allcargo, said, “Blackstone has added tremendous value to the company since we started our relationship 17 months ago and we are exited about this fresh investment by The Blackstone Group into the company. We believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone’s outstanding experience and track record.”
Mr. Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Limited, said; “This is a successful culmination of our partnership. We are confident that the Indian logistics sector will experience significant growth in the coming years. Mr. Shetty has created a strong logistics company with an enviable market position and we have also been impressed by both the breadth and depth of Allcargo’s management team and look forward to partnering with the Company through its critical growth phase.”
About Allcargo Global Logistics Limited
Allcargo is a leading Indian private sector logistics operator. It is amongst the top three CFS operators in India and one of the best CFS operators at Nhava Sheva (India’s largest container port terminal). It is the largest domestic LCL consolidator, and has strategic presence in the domestic project cargo and logistics equipment supply businesses. Its wholly owned subsidiary, ECU Line, is the second largest global neutral LCL consolidator with over 100 offices across 60 countries.
About The Blackstone Group
The Blackstone Group is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at www.blackstone.com.
For more information, please contact:
Deepa Jayaraman
IPAN Hill & Knowlton
Phone: 981 980 8681
(PR)