New Delhi, Apr 3 (UNI): SpiceJet Ltd on Monday said it has completed the hive off of its cargo and logistics division ‘SpiceXpress’ into a separate entity, SpiceXpress and Logistics Private Limited.
The hive-off is effective from April 1, 2023, and paves the way for SpiceXpress to raise funds independently, a statement from the company said.
The hive-off would strengthen SpiceJet’s balance sheet, wipe out a substantial portion of the company’s negative net worth and unlock significant value for the Company and its shareholders, it said.
The consideration for the slump sale would be discharged by SpiceXpress by issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of Rs 2,555.77 crore which will also strengthen the balance sheet of SpiceJet, the statement added.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The separation of our cargo and logistics arm is a stepping stone in our growth story which shall unfold in the times to come.”
“SpiceXpress will provide greater and differentiated focus to cargo and logistics business and will allow the possibility of raising capital for the business to accelerate its growth. The decision to hive off SpiceXpress is in sync with our long term business plan and will unlock significant valuation of the logistic business. Both SpiceJet and SpiceXpress have great potential and will complement each other well,” he said.