Allcargo Logistics is very much in the news today morning, rising over 2.5% to hit an intraday high at Rs.195.35, very close to its 52-week high of Rs.195.60.
The stock rise reacted after the company announced today afternoon that its wholly owned subsidiary viz, Allcargo Belgium N.V has entered into agreement with Nordicon group, and will hold 65% stake in ECU Worldwide (Nordicon) AB, JV company on completion of the transaction.
Allcargo Belgium N.V. will hold 65% stake in ECU Worldwide (Nordicon) AB has which in-turn will hold 100% stake in Nordicon AS & Nordicon DK. These companies own near 40% market share in ocean freight consolidation in nordic region (Sweden, Norway, Finland and Denmark) and had turnover of 38.6 million Euro in the year Jan to Dec 2020.
The cost of acquisition of 65% stake is approximately 243.1 million SEK, which is approximately $28 million.