Allcargo Logistics Restructures: Demerger and Merger Explained

Allcargo Logistics Limited has announced a significant restructuring, effective from November 1. The restructuring involves demerging its international supply chain business into a new entity, Allcargo Global Limited, and merging domestic operations to create greater synergy and value. Shareholders will receive shares on a 1:1 basis according to the new arrangement.

Allcargo Logistics Limited announced on Monday that the demerger of its international supply chain business and the merger of its domestic operation have officially taken effect as of November 1.

In a comprehensive scheme of arrangement, the company has demerged its international supply chain operations into a newly formed entity, Allcargo Global Limited. Concurrently, its domestic express distribution and consultative logistics businesses will merge into Allcargo Logistics Limited to enhance synergy and foster value creation, according to the company.

The arrangement received approval from the Mumbai branch of the National Company Law Tribunal (NCLT) on October 10. The board of directors has approved November 12 as the record date for the transaction, following which shares of Allcargo Logistics Limited will trade excluding the international business. The restructuring will ensure that shareholders receive one share each in both Allcargo Logistics and Allcargo Global, maintaining a 1:1 basis, while those with shares in Allcargo Gati Limited will receive 63 shares of Allcargo Logistics for every 10 shares held.

(With inputs from agencies.)