SpiceJet spins off cargo, logistics biz to SpiceXpress

SpiceJet on Tuesday announced it was transferring its cargo and logistics services on a slump sale basis to its subsidiary SpiceXpress and Logistics Private Limited.

"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," said Ajay Singh, Chairman and Managing Director, SpiceJet, in a statement. SpiceXpress will also be able to raise capital independent of SpiceJet to fund this growth, he mentioned. He said he was confident that the performance of SpiceXpress as an independent entity will leverage and unlock significant value for SpiceJet and all its shareholders.

The airline's statement said: "The logistics business has been valued at Rs 2,555.77 crore based on an independent valuation exercise carried out by the company and the purchase consideration for the same shall be discharged by SpiceXpress by issuance of shares of SpiceXpress to SpiceJet, subject to all approvals as may be required."