April 3, 2023
SpiceJet hives off cargo and logistics business into separate entity
SpiceJet Ltd. has completed the hive off of its cargo and logistics subsidiary 'SpiceXpress' into a new corporation, SpiceXpress and Logistics Private Limited, in order to accelerate the growth of its cargo business and deliver a more streamlined and efficient service to its clients.
“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," said Ajay Singh, Chairman & Managing Director, SpiceJet.
Effective 1 April, the hive off would enhance SpiceJet's financial sheet, eliminate a large amount of the company's negative net worth, and generate considerable value for the company and its shareholders.
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“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,” added Singh.
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