Germany-based freight shipper Hellmann Worldwide Logistics International GmbH is going to buy 40 percent stakes in the Container Transportation Services Ltd (CTSL), a subsidiary of Summit Alliance Port Ltd (SAPL) to strengthen its presence in Bangladesh.

Hellmann and CTSL signed a share subscription agreement on January 19 in this regard, said SAPL today in a disclosure on the Dhaka Stock Exchange (DSE). 

Under the agreement, Hellmann will purchase 3.33 lakh newly issued shares of the CTSL at Tk 10 each, with a premium of Tk 56.50 per share, subject to shareholder approval and regulatory compliance.

Upon completion of the transaction, CTSL's ownership structure will comprise SAPL holding 60 percent and Hellmann 40 percent paving the way for a stronger collaboration between the entities, said the SAPL, a major off-dock service providers to exporter and importers.

Shares of SAPL soared 9.9 percent to Tk 22.2 as of mid-day trading today at the DSE.

The disclosure came six months after CTSL began freight forwarding and shipping agency operations in July 2024 as the local agent of Hellmann Worldwide.

A freight forwarding agency organises the transportation of goods, while a shipping agency handles the work directly related to shipping.

A positive impact of this venture was reflected in SAPL's financial statement for the quarter ended on September 30, 2024, said the company in a disclosure on the Dhaka Stock Exchange (DSE) website. 

Since its foundation in 1871, Hellmann has been one of the largest international logistics providers, offering airfreight, seafreight, road & rail, and contract logistics, according to its website.