Blackstone also intends to purchase additional shares of Allcargo from the open market from time to time, but intends to maintain its ownership below 15%. Allcargo will raise the $60 million through a fresh issue of equity shares, fully and compulsorily convertible debentures and optionally convertible warrants. Allcargo is a leading Indian private sector logistics operator and a niche global logistics player.
A Blackstone representative tells GlobeSt.com that the company has nothing further to add at this moment, and couldn't further detail anything regarding Blackstone's plans. Akhil Gupta, chairman and managing director of Blackstone Advisors India Private Ltd. says in a prepared statement that "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 rationalization of the country's tax structures, and Allcargo is an ideal platform for Blackstone to be in this highly attractive sector."
Shashi Kiran Shetty, chairman and managing director of Allcargo says in a prepared statement that the company is "excited about the investment by the Blackstone Group and value their association as our long term partner. With their global reach and proactive approach, they bring 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."
Shetty continues that 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."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
