Riba constructions buys 40 per cent stake in Gati Ship
Gati Ltd, Express Distribution and Supply Chain Solutions provider has sold 40 per cent of its stake Riba Constructions for Rs 8 cr.
By PTI | Updated:
HYDERABAD: Gati Ltd, a city-based Express Distribution and Supply Chain Solutions provider has sold 40 per cent of its stake in Gati Ship to the city based Riba Constructions for Rs 8 crore, a senior official said.
Sanjeev Kumar Jain, Director - Finance of Gati said the group has plans to divest further in the shipping division and eventually holding minority stake.
"The company has been valued at Rs 20 crore and Riba has acquired 40 per cent state for Rs 8 crore. We would like to further divest stake. We expect it to finish by June end," Jain told PTI.
He said they are in discussions with others besides Riba for stake sale.
"As you aware the shipping division is dragging the group's financials down and we want to give better value to our share holders", he said on reasons for the move.
Gati Ship recently signed an MoU with International Shipping and Logistics FZE, Dubai, a wholly owned subsidiary of TM International Logistics Limited ( A Tata Steel, subsidiary ) and will be launching a joint container service operating from Gujarat to Kerala.
The service is slated to start by the end of this month. Gati Ship suffered Rs 12 crore loss before tax for the period of nine months ended March 31, 2013.
It incurred Rs 25 crore loss during the last fiscal (July 2011 to June 2012).
Last year Gati formed a joint venture (JV) with Japanese global logistic service major Kintetsu World Express under the name 'Gati-Kintetsu Express' to expand services.
Under the JV agreement, Gati will hold 70 per cent stake with 30 per cent to be held by KWE.
Meanwhile, Gati said its consolidated revenues for the third quarter ended March 31 rose by 23 per cent to Rs 317 crore as against Rs 257 Cr for the quarter ended March 2012.
Consolidated Profit after tax for the quarter under discussion stood at Rs 7.5 crore as against loss of Rs 3.5 crore during the same period of previous fiscal, Gati said in a statement.
Gati shares were trading at Rs 31 apiece up 0.81 per cent on BSE during afternoon trade.
Sanjeev Kumar Jain, Director - Finance of Gati said the group has plans to divest further in the shipping division and eventually holding minority stake.
"The company has been valued at Rs 20 crore and Riba has acquired 40 per cent state for Rs 8 crore. We would like to further divest stake. We expect it to finish by June end," Jain told PTI.
He said they are in discussions with others besides Riba for stake sale.
"As you aware the shipping division is dragging the group's financials down and we want to give better value to our share holders", he said on reasons for the move.
Gati Ship recently signed an MoU with International Shipping and Logistics FZE, Dubai, a wholly owned subsidiary of TM International Logistics Limited ( A Tata Steel, subsidiary ) and will be launching a joint container service operating from Gujarat to Kerala.
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The service is slated to start by the end of this month. Gati Ship suffered Rs 12 crore loss before tax for the period of nine months ended March 31, 2013.
It incurred Rs 25 crore loss during the last fiscal (July 2011 to June 2012).
Last year Gati formed a joint venture (JV) with Japanese global logistic service major Kintetsu World Express under the name 'Gati-Kintetsu Express' to expand services.
Under the JV agreement, Gati will hold 70 per cent stake with 30 per cent to be held by KWE.
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Meanwhile, Gati said its consolidated revenues for the third quarter ended March 31 rose by 23 per cent to Rs 317 crore as against Rs 257 Cr for the quarter ended March 2012.
Consolidated Profit after tax for the quarter under discussion stood at Rs 7.5 crore as against loss of Rs 3.5 crore during the same period of previous fiscal, Gati said in a statement.
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Gati shares were trading at Rs 31 apiece up 0.81 per cent on BSE during afternoon trade.
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