The Blackstone Group has invested USD60m in Allcargo Global Logistics, an Indian private sector logistics operator and a niche global logistics player, and has announced plans to take its
The Blackstone Group has invested USD60m in Allcargo Global Logistics, an Indian private sector logistics operator and a niche global logistics player, and has announced plans to take its stake in the firm to as much as 15 per cent through open market share purchases.
Blackstone will have representation on the board of Allcargo, which will raise the USD60m through a fresh issue of equity shares, fully and compulsorily convertible debentures, and optionally convertible warrants.
‘We are excited about the investment by the Blackstone Group and value its association as our long-term partner,’ says Shashi Kiran Shetty, chairman and managing director of Allcargo. ‘With its global reach and proactive approach, it brings immense value to the company.
‘This investment will allow us to execute our organic and inorganic growth plans and continue to strengthen our leadership position in the logistics space. The company had considered several financing options, but we decided to partner with Blackstone because we believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone’s outstanding experience and track record.’
Akhil Gupta, chairman and managing director of Blackstone Advisors India, says: ‘We are confident that the Indian logistics sector will experience significant growth in the coming years. India is seeing buoyant economic growth, improvements in infrastructure, and a rationalisation of the country’s tax structures, and Allcargo is an ideal platform for Blackstone to be in this highly attractive sector.
‘Shashi Shetty has created a strong logistics company with a enviable market position in the container freight stations segment and is currently implementing its growth plans in the inland container depot segment.
‘Also, through its successful acquisition and integration of ECU Line, the leading global neutral less than container load consolidator, it has been able to generate significant synergy. We are impressed by the breadth and depth of Allcargo’s management team, and look forward to partnering with the company through its critical growth phase.’
The Blackstone Group is one of the largest independent alternative asset managers in the world with businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds, as well as financial advisory services including mergers and acquisitions advisory, restructuring and reorganisation advisory and fund placement services.
