New Delhi: SpiceJet plans to transfer its cargo and logistics services to its freighter subsidiary SpiceXpress subject to shareholders’ approval. The financially-strained airline says its logistics business has been valued at Rs 2,555.8 crore and the purchase consideration for the same shall be discharged by SpiceXpress by issuance of shares of SpiceXpress to SpiceJet.
“It is expected that SpiceXpress will operate as a separate entity upon transfer of business on or around October 1, 2021,” it said.
SpiceJet CMD Ajay Singh 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.”
17/08/21 Saurabh Sinha/Times of India
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