ET Exclusive: Allcargo Logistics announces demerger of ECU Worldwide into separate listed entity
Allcargo Logistics Thursday said it will demerge its money-spinning international business ECU Worldwide into a separate listed entity Allcargo ECU Ltd, as it aims, as the last step, to restructure its businesses.
The international supply chain business accounted for over 88% of its total over Rs 20,0000 crore revenue as of FY23.
“Express business and contract logistics business would come under the resulting entity Allcargo Logistics which will benefit from combined synergies and the shareholders of Allcargo and Allcargo Gati will get direct shareholding eliminating inefficient complex corporate structure,” the company said in a statement.
The restructuring started with selling its non-core assets, progressed to giving exits to its partners and acquiring their stakes in business and has culminated with this demerger.
The Allcargo Group will now have four listed entities Allcargo ECU, Allcargo Logistics (that will include the express business after it acquired Gati) apart from Allcargo Terminals and Transindia Real Estate, in each of which its promoters own 70%.
“As per the approved swap ratio, based on the recommendations of the independent valuers, shareholders of Allcargo Gati will get 63 shares in the resulting Allcargo Logistics entity (post ISC demerger) for every 10 shares held in Allcargo Gati. Shareholders of Allcargo will get 1:1 shares in the demerged Allcargo ECU Limited and continue to hold their shares in Allcargo Logistics Limited, which will now be the resulting entity holding Express and Contract Logistics business directly.
