SpiceJet transfers cargo and logistics business to SpiceXpress
SpiceJet announces the handing over of its cargo and logistics business to its subsidiary SpiceXpress and Logistics Pvt. Limited (SpiceXpress). The transfer includes cargo and logistics services on a slump sale basis along with all related assets and liabilities, including, know-how, trademark, licenses, franchises, customer contracts, distribution network etc, subject to the approval of shareholders and also such other approvals as may be required. SpiceXpress will operate as a separate entity upon transfer of business on or around October 1, 2021.
As per the last quarterly segment reporting by the company ended June 30, 2021, the logistics arm continued with a profitable quarter of Net Profit of INR 30 crore. The revenue increased by a 285 percent to INR 473 crore for the reported quarter as compared to INR 166 crore in the same quarter last year.
The logistics business has been valued at INR 2,555.77 crore based on an independent valuation exercise 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.
Ajay Singh, Chairman and managing director, SpiceJet, said “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.”