Allcargo Logistics Limited (BSE:532749) entered into a share purchase agreement to acquire 8.51% stake in Gati Limited (BSE:532345) from Mahendra Kumar Agarwal, TCI Finance Limited (NSEI:TCIFINANCE) and Mahendra Investments Advisors Private Limited for approximately INR 780 million on December 5, 2019. The consideration shall be paid in cash. As per the terms, Allcargo Logistics shall acquire 10.4 million shares in Gati Limited at the price of INR 75 per share.

Prior to the transaction, Mahendra Kumar Agarwal holds 1.81% stake, TCI Finance Limited holds 4.22% stake and Mahendra Investments Advisors Private Limited holds 2.48% stake in Gati Limited, respectively. Post completion of the transaction and related preferential allotment, Allcargo Logistics shall hold 19.43% stake in Gati Limited. In related deals, Allcargo Logistics Limited made an offer to acquire 26% stake in Gati Limited for INR 2.4 billion and Gati Limited shall make a preferential allotment of 13.3 million shares for INR 1 billion on December 5, 2019.

Allcargo Logistics will have right to nominate directors on the Board of Gati as per the terms of the agreement. The transaction is subject to receipt of certain statutory approvals and approval of Securities and Exchange Board of India. The transaction is approved by Board of Directors of TCI Finance Limited and Allcargo Logistics Limited on December 5, 2019.

The transaction is expected to be completed by March 30, 2020.