Blackstone to invest up to Rs 380 cr in Allcargo Logistics' arms
Global investment firm Blackstone will buy a stake in the Allcargo Logistics' arms engaged in the warehousing business for up to Rs 380 crore, according to a regulatory filing.
"Blackstone will make an investment in the company's (Allcargo Logistics) subsidiaries through a combination of equity and debentures up to Rs 380 crore," Allcargo Logistics Ltd said in a filing to the BSE.
The partnership between Blackstone and Allcargo Logistics proposes to make a further investment in the future to develop industrial and logistics parks across key markets of the country, the filing said.
The Board of Directors of Allcargo Logistics on Monday approved the "execution of definitive transaction documents with BRE Asia Urban Holdings Ltd, an entity controlled by funds managed or advised by affiliates of The Blackstone Group Inc (Blackstone), which is a globally renowned real estate private equity investor, for transfer of a part of the warehousing business of the company".
The transaction is expected to conclude in a phase-wise manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones as prescribed in the transaction documents.
Post the transaction, the company will cease to have sole control over certain subsidiaries engaged in the warehousing business and will retain a minority stake in such subsidiaries.
Earlier in June 2019, Blackstone announced that the company has acquired a 97.7 percent stake in Aadhar Housing Finance Limited. It included the entire stake held by existing controlling shareholders Wadhawan Global Capital and Dewan Housing Finance Limited to be transferred to Blackstone.
Blackstone has been active in India since 2006 and has committed $10.4 billion of investments in India through private equity, real estate, and tactical opportunities. The company’s asset management businesses include investment vehicles focussed on private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds.
Aadhar said it has a reach of more than 90 percent of the country’s low-income population, and provides credit solutions that make homeownership more accessible.
(Edited by Suman Singh)
(Disclaimer: Additional background information has been added to this PTI copy for context.)