The transfer, which will occur on a slump sale basis, includes 'all related assets and liabilities, including, know-how, trademark, licenses, franchises, customer contracts, distribution network etc,' reports London's Air Cargo News.
'The logistics business has been valued at INR2,555.77 crore (US$347 million) based on an independent valuation exercise carried out by the company [SpiceJet] 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,' SpiceJet said in a statement.
Ajay Singh, chairman and managing director at SpiceJet, commented: '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.
'SpiceXpress will also be able to raise capital independent of SpiceJet to fund this growth. We are confident that the performance of SpiceXpress as an independent entity will leverage and unlock significant value for SpiceJet and all its shareholders.'