Allcargo Logistics is planning to bid for stakes in state-run Container Corp of India and is in advanced discussions with a foreign investor to partner in the planned purchase.
“Of course, we are very interested,” Allcargo chairman Shashi Kiran Shetty said in an interview. “Concor’s business is a natural fit for us. We are looking to tie up with a strategic partner for the bid, and are currently in the final stages of selecting the bid partner.”
Allcargo is believed to be in advanced stages of talks with a few global private equity firms and is expected to finalise an agreement within the next 10-15 days. Shetty refused to divulge any names.
The government is looking to sell 30% of Concor NSE -2.88 % and is expected to shortly invite expressions of interest for the public sector enterprise, the first stage of the bidding process. The pending introduction of a new policy on land leasing by the railway ministry has been delaying the bidding process for Concor. The new policy will slash land leasing rates by half and extend lease periods.
Allcargo’s rivals such as Gateway Distriparks NSE -1.16 % are also open to bidding for Concor, chairman Prem Kishan Dass Gupta had said recently.
If Allcargo’s bid is successful, it will be the 13th major investment for the company, which has interests in global freight forwarding, container freight stations, third-party logistics and warehouses. Most recently, it entered express logistics by acquiring a majority stake in Gati.
Source: Economic Times
