Blackstone picks up 10.38 per cent in Allcargo Global Logistics
20 Feb 2008
Mumbai: Private equity firm Blackstone has acquired a 10.38 per cent stake in Allcargo Global.
Chairman and managing director of Allcargo Global SK Shetty has stated that Blackstone paid Rs934 a share for the stake in the company, representing a premium of 30 per cent on the last two week's traded price.
Shetty said that for now, Blackstone will buy the 10.38 per cent stake for Rs242 crore, and can increase its stake to 14.99 per cent by picking up the remaining from the secondary markets, as the understanding is that it can take that much of the fully diluted equity at any point of time.
In an interview to CNBC-TV18, Shetty said funds from the acquisition would be used for capital expenditure, with the company having various plans to fund different stages of various projects. He added that Allcargo is coming up with container freight stations (CFS) and inland container depots (ICD) in different parts of the country, which would need around Rs100 crore as investment for cranes of different capacity to handle the cargo.
Blackstone would have board representation in the company, and may participate in ''major decision making'', most probably leaving the everyday management of the company with the promoters.
