SpiceJet to transfer cargo and logistics services to SpiceXpress
Indian airline SpiceJet said that it has agreed to offload its cargo and logistics services to its subsidiary SpiceXpress and Logistics Pvt. Limited on a slump sale basis.
The transfer of the business will be contingent on the approval of shareholders and other such approvals as needed. The cargo and logistics business of SpiceJet is said to have a valuation of INR 2,555.77 crores.
The business has a network spanning more than 68 domestic and 110 plus international destinations, which include the US, Europe, and Africa.
For the quarter ended 30 June 2021, SpiceJet’s cargo and logistics arm had a net profit of INR 30 crores.
The deal includes the transfer of all associated assets and liabilities, which include know-how, licenses, trademark, franchises, distribution network, customer contracts, and others.
SpiceJet to transfer cargo and logistics services to SpiceXpress. Photo courtesy of Bilal EL-Daou from Pixabay.
SpiceXpress and Logistics is expected to operate as an independent entity after the transfer of business on or around 1 October 2021. After this, SpiceJet will continue to offer some transportation services, ground and logistics support, sharing and provisioning of resources, management services, and others to SpiceXpress and Logistics.
Ajay Singh — Chairman and Managing Director of 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.”