Allcargo, Thomas Cook boards OK Hindustan Cargo acquisition

New Delhi, Jan 2 (UNI) Allcargo Global Logistics Ltd today said it will acquire the wholly-owned airfreight and logistic arm of Thomas Cook India Ltd, Hindustan Cargo Ltd (HCL)..

The Board of Directors of the company has approved acquisition of entire paid up capital comprising of 2,50,000 equity shares of Rs 10 each in Hindustan Cargo Ltd from Thomas Cook India Ltd.

By virtue of the acquisition, HCL will become a wholly-owned subsidiary of the company. It will be made an independent airfreight services subsidiary of Allcargo, a statement said.

The Board of Directors of Thomas Cook has also accorded their approval to the acquisition scheme.

Allcargo recently said that it plans to double capital expenditure to Rs 50-60 crore in the next 12 months and expects its specialised cargo revenues to surge on rising demand.

It acquired Belgium-based ECU Hold NV in May. The company is one of the leading LCL (Less than a Container Load) consolidator in India offering direct outbound and inbound LCL groupage services to and from major cargo destinations worldwide.

The company derives 70 per cent of its revenue from material handling and the rest from its fledgling freight stations.

UNI