Delhivery to acquire Ecom Express

Delhivery Limited (NSE: DELHIVERY, BOM: 543529) announced that it has signed a definitive agreement to acquire a controlling stake in Ecom Express Limited for a cash consideration of Rs. ~1,400 Cr from its shareholders.

Sahil Barua, MD and CEO, Delhivery said, "The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people. The founders and management of Ecom Express have established a high quality network and team, creating a strong foundation to integrate into Delhivery's operations."

K. Satyanarayana, founder - Ecom Express said, "Delhivery is among India's leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express' next phase of growth. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players."

The completion of the transaction is subject to approval from the Competition Commission of India, and customary closing conditions.

Shardul Amarchand Mangaldas & Co. acted as the legal advisor and Ernst & Young acted as the financial and tax diligence advisor to Delhivery on this transaction.

Shares of Delhivery Limited was last trading in BSE at Rs. 258.25 as compared to the previous close of Rs. 263.60. The total number of shares traded during the day was 171092 in over 4048 trades.

The stock hit an intraday high of Rs. 262.90 and intraday low of 249.55. The net turnover during the day was Rs. 43667601.00.

Source : Equity Bulls

Keywords

Delhivery INE148O01028 LogisticsSolutionProvider Acquisition ControllingStake EcomExpress