Allcargo Logistics is doing well; rising over 2.5% to hit an intraday high at Rs.384, volumes are also pretty robust at 30k shares changing hands today morning alone. Its 52-week high stands at Rs.494.85.
Its Board approved the plan to acquire 38.87% stake from its partners at an enterprise value of Rs. 373 crore.
With the acquisition, Allcargo Logistics will take its stake to 100% in the contract logistics business.
The acquisition price is based on the agreement that was signed with ACCI JV partners in 2016.
The board also approved sale of smaller non-core customs clearance business. Allcargo Logistics will sell its 61.13% stake in this business for an enterprise value of approx. Rs.42 crore. Further, the company declared an interim dividend of Rs.3.25/share for FY23.
This is a part of the company’s plan to exit non-core businesses and consolidate its core businesses. Post demerger of Allcargo Terminals and TransIndia, which has already received NCLT approval, the company shall now have two business segments - International Supply Chain and Express & Contract Logistics.