SpiceJet to transfer cargo and logistics business to SpiceXpress
17 / 08 / 2021
Image source: SpiceXpress
India-based carrier SpiceJet has announced plans to transfer its cargo and logistics business to its subsidiary company SpiceXpress.
SpiceXpress will operate as a separate entity upon transfer of business on October 1, 2021.
The transfer, which will occur on a slump sale basis, includes “all related assets and liabilities, including, know-how, trademark, licenses, franchises, customer contracts, distribution network etc”.
“The logistics business has been valued at INR 2,555.77 crore based on an independent valuation exercise carried out by the company [SpiceJet] and the purchase consideration for the same shall be discharged by SpiceXpress by issuance of shares of SpiceXpress to SpiceJet, subject to all approvals as may be required,” SpiceJet said in a statement.
Ajay Singh, chairman and managing director at SpiceJet, commented: “The proposed transfer of business to SpiceXpress will allow the new company to rapidly grow its innovative logistics platform and its unique fulfilment as a service business model.
“SpiceXpress will also be able to raise capital independent of SpiceJet to fund this growth. We are confident that the performance of SpiceXpress as an independent entity will leverage and unlock significant value for SpiceJet and all its shareholders.”
