INDIA BUSINESS WORLD - FEBRUARY 16th - FEBRUARY 29th - 2008
BLACKSTONE BUYS 10.4% OF ALLCARGO
BLACKSTONE has acquired 10.4% stake in Mumbai-based logistics major Allcargo Global Logistics (AGL) for Rs 242 crore. The private equity player has paid Rs 934 a share, a 30% premium on the last 15-day traded price, for the stake.
AGL is convening an extraordinary general meeting of the shareholders on March 19, to seek approval for the deal. On BSE, AGL shares rose 8% to close at Rs 772.50. AGL chairman and managing director Shashi Kiran Shetty said Blackstone could buy shares from the market and increase their stake to a shade below 15%. “We will be utilising these proceeds for the proposed capital expenditure—to buy cranes and expanding our inland container depot (ICD) business,” added Mr. Shetty.
The transaction involves stake sale through equity shares, fully and compulsorily convertible debentures (FCCDs) and warrants. AGL has issued 1,000 equity shares of Rs 10 each at a price of Rs 934 per share. It has also issued 10.8 lakh FCCDs of Rs 10 each convertible into same number of equity shares on completion of 18 months. Apart from these instruments, AGL issued 15.13 lakh warrants of Rs 10 each convertible into same number of equity shares at the option of the investors within 18 months, at a price ranging between Rs 934 to Rs 1,284 per warrant. On subscription of warrant, investors will pay Rs 194 per warrant.
AGL is developing container freight stations (CFSs) and ICDs in different parts of India. It will invest around Rs 100 crore to acquire different capacity cranes used in construction activities.
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