Mumbai (Maharashtra) [India], Jan 13 (ANI): Allcargo Logistics Ltd said on Monday its board of directors has approved the execution of definitive transaction documents with BRE Asia Urban Holdings Ltd, an entity controlled by funds managed or advised by affiliates of the Blackstone Group Inc.
Blackstone, a globally renowned real estate private equity investor, will pick up a part of the company's warehousing business.
"Blackstone will make an investment in the company's subsidiaries through a combination of equity and debentures up to Rs 380 crore," Allcargo Logistics said in a statement.
The partnership between Blackstone and the company proposes to make further investment in the future to develop industrial and logistics parks across certain key markets of India, it added.
The transaction is expected to conclude in a phase-wise manner over the next one year. Post conclusion of the transaction, Allcargo Logistics will cease to have sole control over certain subsidiaries engaged in the warehousing business and will retain a minority stake in such subsidiaries.
Blackstone does not belong to the promoter or promoter group. Hence, the transaction will not fall within the purview of related party transactions. (ANI)