AllCargo likely to bid for CONCOR stakes

Allcargo Logistics is showing interest to bid for the stakes in state-run Container Corp of India. The logistics provider, in order to make the purchase successful, is also in advanced discussions with a foreign investor to partner in the planned purchase.

Speaking at an interview, Allcargo Chairman Shashi Kiran Shetty said, “Of course, we are very interested. 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.”

As per reports, Allcargo is in talks with a few global private equity firms and is expected to finalise an agreement within the next 10-15 days. However, the company did not give any specific name.

30% stake of Concor are to be sold by the Government of India for which the government is expected to shortly invite expressions of interest for the public sector enterprise, the first stage of the bidding process. The bidding process for Concor has been delayed due to the pending introduction of a new policy on land leasing by the Railway Ministry. The new policy will slash land leasing rates by half and extend lease periods.

As per reports, Gateway Distriparks, the rival company of Allcargo is also open to bidding for Concor.

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.

Source: ET