Allcargo Global Logistics

Allcargo Global Logistics Ltd has announced that the Board of Directors of the Company at its meeting held on October 12, 2007 has approved a Scheme of Arrangement for acquisition of the business including the assets and liabilities of the Projects and Equipment Division of Transindia Freight Services Pvt Ltd (TFSPL).

TFSPL is an unlisted Company owned by the Promoter family of the Company, and is primarily engaged in the business of contracting transportation of containers and project related cargo, and hiring of Cranes, Reach stackers and Forklift trucks. TFSPL is also engaged in investments and car hire.

The Scheme of Arrangement approved by the respective Boards provides for the demerger of the Projects and Equipment Division of TFSPL into the Company with effect from January 01, 2007 subject to statutory approvals.

As per the Scheme of Arrangement, the share swap ratio is 518 fully paid-up equity shares of the Company for every 100 equity filly paid up shares of TFSPL which is based on a joint recommendation of two leading firms of Chartered Accountants, namely Khimji Kunverji & Co. and Walker, Chandiok & Co. Accordingly the shareholders of TFSPL will be issued 21,03,080 fully paid up equity shares of Rs 10 each of the Company as consideration. This arrangement will be EPS accretive to the shareholders of the Company.

The shares to be issued to the shareholders of TFSPL (under the Scheme of Arrangement) will be listed on The Stock Exchange, Mumbai ("BSE") and the National Stock Exchange ("NSE") where the shares of the Company are currently listed.