Allcargo Global to acquire equipment division TFSPL

MUMBAI: Logistics services provider Allcargo Global Logistics on Friday said it would raise up to Rs 300 crore by issuing securities in the domestic market.

The company also said it would acquire the business of the Projects and equipment division of Transindia Freight Services Pvt Ltd (TFSPL).

The board of directors of the company has approved the fund raising programme, Allcargo Global informed the Bombay Stock Exchange.

The company has appointed CitiGroup, Collins Stewart Inga Pvt Ltd and the Investment Banking arm of Kotak Mahindra Capital Company as the bankers for this purpose, it said.

Allcargo Global provides multi-modal transport solutions, handling project cargo apart from providing airfreight and road transportation logistics.

As per the scheme of arrangement, Allcargo Global would acquire all the assets and liabilities of TFSPL, which is into the business of contracting transportation of containers.

Under the share swapping arrangement, a shareholder would get 518 shares of the new company for every 100 shares held in TFSPL. Accordingly, the shareholders of TFSPL will be issued 21,03,080 fully paid-up equity shares, the company added.

The shares to be issued to the shareholders of TFSPL would be listed on the Bombay Stock Exchange and the National Stock Exchange.

The demerger of the projects and equipment division of TFSPL into Allcargo Global would be effective from January 1,2008 subject to statutory approvals.