April 4, 2023
1 min read

SpiceJet completes SpiceXpress hive off

The hive off is effective from April 1, 2023 and paves the way for SpiceXpress to raise funds independently…reports Asian Lite News

SpiceJet has completed the hive off of its cargo and logistics division ‘SpiceXpress’ into a separate entity, SpiceXpress and Logistics Private Limited.

The consideration for the slump sale will 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 hive off is effective from April 1, 2023 and paves the way for SpiceXpress to raise funds independently.

As per the airline, 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.

Ajay Singh, Chairman & 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.

“The hive off will not only enable SpiceXpress to raise cash independently, it will significantly reduce SpiceJet’s negative net worth. Having restructured over $100 million, outstanding dues to Carlyle Aviation Partner last month, the hive off will further strengthen and deleverage our balance sheet,” he added.

During the pandemic, SpiceXpress played a critical role in ensuring that vital trade routes between India and other countries remained intact. With India’s transportation system coming to a virtual halt, SpiceXpress freighters and cargo planes took to the skies every single day to ferry a record supply of relief material, medicines and medical equipment to and from wherever was required.

ALSO READ: Bangladesh exports fall in March

Previous Story

‘Indian startups with ‘strong fundamentals’ will survive’

Next Story

Swiggy CTO Dale Vaz steps down

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

‘India has emerged as a security provider in Indo-Pacific’

Singh called upon the nations to come together in dealing

‘India ready to combat China’s cyber attacks’

According to the official data, India witnessed a nearly 300