Allcargo approves demerger
News: AllCargo has approved a de-merger to create three business entities: Allcargo Logistics (that will house subsidiaries ECU Worldwide, Gati and Avvashya CCI) apart from Allcargo Terminals and TransIndia. The transaction (with regulatory approvals) is expected to be completed within a 15-month period.
Views: All three companies will have similar shareholding and they will gain one share of each entity for every one share held of AllCargo Logistics. As per the management, the move will accelerate better management focus and capital efficiency across businesses.