Allcargo gains after subsidiary announces acquisition of Hong Kong-based Asiapac Equity Investment

Allcargo Logistics advanced 1.56% to Rs 409.10 after the company informed that its wholly owned step-down subsidiary AGL N.V. has entered into an agreement to acquire Asiapac Equity Investment for $4.99 million.

In an exchange filing made during market hours today, the company said that AGL N.V. has entered into a share purchase agreement with Atlas Global Trading F.Z.C. (UAE) to acquire 100% stake in Hong Kong-based Asiapac Equity Investment.

Asiapac Equity Investment is engaged in the business of Investment and related activities through its subsidiaries. On standalone basis, the company had reported zero turnover for the past three years.

However, the company has a subsidiary Asiapac Turkey Tasimacilik A.S, which reported a revenue of $30.98 million and EBITDA of $ 1.07 million for the year January to December 2021. Estimated EBITDA for Year ending December 2022 is approximately $3.5 million.

Allcargo stated that the said acquisition would result in increase in business of the company in Turkey in full container load (FCL) as well as less than container load (LCL) consolidation and contribute to future growth.

AGL N.V. would acquire 10,000 shares of Asiapac Equity Investment, aggregating to 100% of total shareholding in the entity, for a cash consideration of $4.99 million.

Allcargo Logistics is an integrated logistics service provider and operates in multiple business segments - multimodal transport operation (MTO), container freight station (CFS) / inland container depot (ICD), projects and engineering (P&E), contract logistics, and logistics parks (LPs) in which it has forayed recently.

The company's consolidated net profit declined 7.21% to Rs 211.57 crore on a 6.48% rise in sales to Rs 5,300.22 crore in Q2 FY23 over Q2 FY22.

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