In order to strengthen its leadership position in India and establish its global presence, Gati has been exploring possibilities for some time now to create more value for its shareholders. To achieve this, the board of the company has approved the proposal to form joint venture (JV) with Japanese global logistic service major Kintetsu World Express (KWE) under the name Gati- Kintetsu Express.
Under the JV agreement, Gati will hold 70 percent stake and 30 percent stake will be held by KWE. As part of the transaction, Express Distribution and Supply Chain (EDSC) business of Gati will move into the JV company through a business transfer agreement.
KWE will invest Rs 267.70 crore for its 30 percent stake in the JV through a combination of primary and secondary acquisition of shares. The funds raised from the transaction will be primarily used to reduce debt. The JV company shall be consolidated in financials of Gati.
The proposed JV will combine Gati’s expertise and global customer base. The JV company will support large customer base of KWE who have operations in India, simultaneously strengthening KWE’s distribution capabilities into the Indian Market. Together KWE and Gati will partner in supporting business expansion of domestic and international customers in the Indian market.
| Company Name | CMP |
|---|---|
| Allcargo Logistics | 9.65 |
| TVS Supply Chain Sol | 117.45 |
| Container Corp | 519.55 |
| Delhivery | 456.35 |
| Mahindra Logistics | 407.90 |
| View more.. | |
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