Allcargo Logistics completes demerger of global supply chain biz

Mumbai, Nov 3 (PTI) Allcargo Logistics Limited on Monday announced that the demerger of its international supply chain business as well as the merger of domestic business has become effective from November 1.

Under a composite scheme of arrangement, Allcargo Logistics has demerged its international supply chain business into a newly incorporated entity Allcargo Global Limited.

Following the demerger, domestic express distribution and consultative logistics businesses will be merged into the resulting Allcargo Logistics Limited, aligning operations for enhanced synergy and value creation, the company said.

The scheme of arrangement had received approval from the Mumbai branch of the NCLT on October 10.

The board of directors has approved the record date of the transaction as November 12, basis which the share of Allcargo Logistics Limited will trade ex-international business, it said.

The merger will give effect to the consolidation of the domestic express business (currently under Allcargo Gati and GESCPL) and the consultative logistics business (currently under ASCPL) into the resulting entity.

The listing of Allcargo Global Limited will follow necessary approvals and regulatory processes, the company said.

Following this restructuring, shareholders of Allcargo Logistics Limited will hold one share each in Allcargo Logistics and demerged Allcargo Global on a 1:1 basis, while those holding shares of Allcargo Gati Limited will receive 63 shares of Allcargo Logistics Limited (post demerger of the international supply chain business) for every 10 shares held in Allcargo Gati Limited, it said. PTI IAS HVA