MUMBAI : Allcargo Logistics Ltd. considers selling a stake in its container shipping firm ECU Worldwide. ECU Worldwide is a prominent international cargo and air freight logistics company present in around 180 countries with over 300 offices worldwide.
The company is reportedly working with an adviser on the sale of the stake and Allcargo is seeking a deal that would value ECU at around $1 billion, as mentioned in a report in Bloomberg. The disposal could be a minority or majority stake. Deliberations are on-going and the company could decide not to proceed with the sale.
Allcargo Logistics is a home-grown logistics company, headquartered in Mumbai. Its services comprise global multimodal transport operations, pan-India container freight stations, inland container depots, third-party logistics, warehousing, contract logistics and logistics parks.
Allcargo is working with Jefferies Financial Group to evaluate fundraising opportunities in ECU Worldwide and engage with private equity and strategic investors, Allcargo Group chief strategy officer Ravi Jakhar said to the news site. The company continues to look for strategic acquisitions, he said.
The potential sale comes as the coronavirus pandemic drives investor interest in shipping, warehousing and other logistics assets. A sale of AP Moller-Maersk A/S’s refrigerated container business could value it at as much as $1 billion.
ECU Worldwide traces its origins to Belgium in 1987, and offers services including less than container load consolidation, full container load shipping and air freight, its website shows. It has more than 3,500 team members in over 180 countries.