The Blackstone Group Inc. agreed to invest up to 3.8 billion Indian rupees for a stake in the warehousing business of India-based Allcargo Logistics Ltd.
The private equity giant will make the investment through BRE Asia Urban Holdings Ltd. via a combination of equity and debentures. The parties aim to make further investment in the future to develop industrial and logistics parks across certain key markets of India.
In line with the transaction, which was approved by Allcargo's board, the company will relinquish control of certain subsidiaries involved in the warehousing business and will hold a minority interest in such subsidiaries.
The deal is set to close in phases over the next 12 months, subject to certain conditions.
As of Jan. 10, US$1 was equivalent to approximately 70.94 Indian rupees.