Leading integrated logistics solutions provider Allcargo Logistics Ltd is eyeing a potential minority or majority stake sale in cargo and air freight logistics firm ECU Worldwide.
ECU Worldwide is looking to raise funds and has appointed Jefferies Financial to evaluate options, its Mumbai-based parent Allcargo Logistics said on Tuesday.
Allcargo is working with an adviser on a potential minority or majority stake sale and is seeking a deal that would value ECU at about $1 billion, according to sources.
“It is premature to comment on what percentage of stake we will actually sell and at what value,” stated Ravi Jakhar, Allcargo Chief Strategy Officer.
ECU worldwide, a unit of Allcargo Logistics, offers cargo or container space on ships to customers across the globe. It has a nearly 40% market share in ocean freight consolidation.
On valuation, Jakhar said the company does not have any guidance and any numbers mentioned by any third party are “purely speculative”.
Shares of Allcargo Logistics rose as much as 4% on Tuesday, but gave up gains and was trading down about 0.8% by 0710 GMT amid a drop in the broader market.