Blackstone To Invest $60M in Allcargo

MUMBAI, INDIA-The board of directors of India-based Allcargo Global Logistics Ltd. has approved an investment of $60 million by New York City-based Blackstone Group and its affiliates subject to seeking the necessary mandatory and regulatory clearances. As part of this transaction, Blackstone will have representation on the board of Allcargo.

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.”