In the previous trading session, Gati share closed down 3.37% or Rs 1.25 at Rs 35.80.
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Gati Making Discussions To Sell Equity Stake In Shipping Division To Bernhard Schulte
Hyderabad-based logistics giant Gati is making discussions with German ship-management firm Bernhard Schulte to sell equity stake in its loss-making shipping biz to lift up cash to bridge over the financial disaster.
Bernhard Schulte will get hold of important equity stake in Gati's demerged shipping biz, Gati Ships, assisting it to charter container vessels to take advantage of the mounting cargo trade emerging out of the country.
As per analysts, loss-making Gati Ships, set up in 1989, has four container vessels, bringing in a valuation of about 200 crore.
Bernard Schulte, which manages a fleet size of over 650 vessels, functions in 25 nations.
A delegate for Gati stated, "Gati has been looking to rope in a strategic partner of a global scale in the shipping business that will help restructure and grow the business with a new direction. We are identifying the partner and we have been in discussion with prospective strategic partners who could hold significant stake."
The Mahendra Agarwal-controlled firm had entered into a JV with Japan-based Kintestu Logistics to set up Gati-Kintestu Express early this month, allowing it to trim its debt and swell its global footprint.
Gati will possess 70% in the JV whilst the Japanese associate will hold the remaining 30%.
Express distribution and supply chain biz with its overall debt of 330 crore will be changed to the novel JV.
An FMCG analyst said, "This will put an end to Gati's financial problems."
In the previous trading session, Gati share closed down 3.37% or Rs 1.25 at Rs 35.80.
the stock of the company closed at rs 35.55 after shedding 0.7% on the BSE
Gati making discussions to sell equity stake in shipping division to Bernhard Schulte
