Blackstone nears deal to acquire stake in India’s Allcargo’s unit

Photo: Bloomberg

Blackstone Group Inc. is nearing a deal to buy a stake in the warehousing unit of India’s Allcargo Logistics Ltd. for 3.8 billion rupees ($54 million), said people with knowledge of the matter.

Allcargo’s board is expected to approve the proposal on Monday, said the people, who asked not to be identified as the deliberations are private. The U.S. private equity firm could further raise its stake over the coming months based on the achievement of pre-agreed performance milestones, which could leave Allcargo with a minority interest, the people said.

An announcement could come as soon as Monday, the people said. A representative for Blackstone declined to comment, while a spokesman for Allcargo had no immediate comment. Shares of Allcargo extended their gains to as much as 5.4%.

Blackstone is expanding into logistics in India to tap the growing demand for warehouses as companies including Amazon.com Inc. and Walmart Inc. invest billions of dollars in the world’s fastest growing e-commerce market. The introduction of a nationwide tax regime has also prompted demand for large storage spaces from retailers to ensure fast, last mile delivery of goods.

Allcargo’s logistics division plans to build 5 million square feet of warehouses across India by 2021, the company said in a presentation in August. Consultancy EY predicted in a report last year that companies will invest $7.8 billion in warehouses in the South Asian nation by the end of 2020.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.