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Allcargo Logistics shares gain after subsidiary forms JV with Nordicon Group

Allcargo Belgium will hold a 65 percent stake in the joint venture, while the remaining will be held by the owners of Nordicon, the company has said

July 30, 2021 / 12:32 PM IST
Allcargo Logistics | Sheetal Gulati has resigned as Group Chief Financial Officer of the company. (Image: Twitter @allcargoofficial)

Allcargo Logistics | Sheetal Gulati has resigned as Group Chief Financial Officer of the company. (Image: Twitter @allcargoofficial)

 
 
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Allcargo Logistics share price was up more than 2 percent intraday on July 30 after the company's wholly-owned subsidiary Allcargo Belgium NV entered into a joint venture (JV) agreement with the Swedish logistics firm Nordicon Group.

Allcargo Belgium, which operated ECU Worldwide, will hold a 65 percent stake in the JV, while the remaining would be held by the owners of Nordicon, Allcargo Logistics said.

"ECU Worldwide will hold a 65 percent share, while the balance of 35 percent will be held by the present owners of Nordicon. With this strategic investment, ECU Worldwide will now be a market leader with a near 40 percent market share of the less-than-container-load (LCL) business in the Nordic region," it added.

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The stock was trading at Rs 193.15, up Rs 3.10, or 1.63 percent at 1207 hours. It has touched an intraday high of Rs 195.35 and an intraday low of Rs 188.95.

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"The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector," Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd, said.

"Nordicon is led by a strong and capable team, and we are very pleased to welcome them into the larger ECU Worldwide family. This partnership is a great way to scale the global business and better serve customers."

Nordicon has an innovative asset-light rail consolidation business that opens new opportunities for ECU Worldwide across Europe, said Ravi Jakhar, Chief Strategy Officer, Allcargo Logistics Ltd.

“Nordicon’s integration with the ECU network will lead to incremental business revenue and margins at existing ECU offices across the world. This is a high-value accretive deal for ECU Worldwide and Allcargo and will create value for stakeholders,” he added.
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first published: Jul 30, 2021 12:32 pm
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