Corporate

Blackstone invests $23 million in Allcargo

The Blackstone Group, the global private equity giant, today said that it had pumped in an additional $23 million (around Rs 110 crore) into Allcargo Global Logistics. - Blackstone cancels plan for Asian fund The Allcargo board approved an investment of 1.5 million warrants of Rs 10 each, convertible into equal number of equity shares of the company, at a price of at least Rs 934 per equity share by The Blackstone Group and its affiliates, the company said in a statement. With the latest investment, Blackstone’s total commitment to the company would increase to $75 million. It would continue to have representation on the Allcargo board. Akhil Gupta, chairman and managing director of Blackstone Advisors India, is a director on the company’s board. In recent months, the private equity fund that has investments in companies such as Nagarjuna Construction and garment manufacturer Gokuldas Exports has been scouting for investments but had not announced fresh stake acquisition. The company — which has interest in container freight station, equipment hire, project logistics and warehousing — reported a net profit of Rs 22.53 crore on an income Rs 116.42 for the second quarter ended June. The warrants allotted to Blackstone GPV Capital Partners (Mauritius) V-K, Blackstone GPV Capital Partners (Mauritius) V-L, Blackstone GPV Capital Partners (Mauritius) V-M and Blackstone GPV Capital Partners (Mauritius) V-Non preferential basis were due for conversion at an exercise price of Rs 1,284 per equity share, by September 26, 2009, Allcargo said. But the warrant holders decided to convert the warrants at a 27.26 per cent discount to the original exercise price. The logistics company’s shares closed 1.23 per cent higher at Rs 836.45 on the Bombay Stock Exchange. “The board of directors of the company considered the prevailing market conditions, the economic slowdown and the funding requirement of the company, approved and accepted the revised exercise price,” the communiqué said. To seek shareholders approval for amendments to the investment agreement and also to amend the articles of association, Allcargo had convened an extraordinary general meeting on October 15, it added.

Cash Payday Loans commented:

Hoping such investment will come with good consequences and profits.Thanks for such post.

08.11.2011


Add your comment:
Name:
Site address: http://
Your message:
Enter today\\\\'s date, 2 digits
(spam protection):

Categories
Business Ideas
Business Opportunities
Corporate
Home Business
International Business
Management
Online Business
Public Company
Public Relations
Small Business
News of the day
ArcelorMittal may slash 10,000 jobs in 2010: report
The world"s largest steel maker ArcelorMittal may cut 10,000 jobs globally next year and plans to reduce costs in order to regain its lost market share particularly in Europe, a media report says.
Popular Articles
payday loan lenders

Twitter buys location tracking entity Mixer Labs
Famed micro-blogging site Twitter has acquired location tracking firm Mixer Labs for an undisclosed amount.

Governance and the fisc
How best can the Union government use the window of political opportunity that has been opened up by the verdict of the recent assembly elections? Since the ruling Congress party has been strengthened by the poll result and there are no important elections due for the next year, the opportunity to push for better governance should not be missed. To begin with, the prime minister should consider a minor reshuffle of portfolios that empower performers and sideline non-performers, and also improve bureaucratic standards. The argument that in some ministries the ruling party needed fund collectors rather than good administrators has appeal before an election, but is less convincing when the priority should be to get things going. The ruling party should take a holiday on rent-seeking for a year and push for reforms and improved public sector productivity in the infrastructure sector, especially power. The recent raids by the Central Bureau of Investigation in the Department of Telecommunications are hopefully not part of some political bargaining between coalition partners but the beginning of a phase of crackdown on “corruption in high places” that the prime minister sought. Given the DMK government’s dependence in Tamil Nadu on the Congress for its survival in office, the latter can afford to crack the whip in Delhi and not appear as subservient as it does when dealing with this junior ally. Exemplary action here would send an important message to other junior partners and to ministers within the ruling party who have not exactly been symbols of good governance.

© Copyright 2009