Germany's Hellmann Worldwide Logistics International GmbH, one of the world's largest international logistics service providers, is going to buy a 40 percent stake in Container Transportation Services Ltd (CTSL) to strengthen its presence in Bangladesh.

Hellmann and the CTSL, a subsidiary of Summit Alliance Port Ltd (SAPL), signed a share subscription agreement in this regard on January 19, the SAPL said in a disclosure on the Dhaka Stock Exchange (DSE) yesterday.

Under the agreement, Hellmann is set to purchase 3.33 lakh newly issued shares of the CTSL for Tk 2.21 crore. Each share will bear a face value of Tk 10 while the premium will be Tk 56.50, subject to shareholder approval and regulatory compliance.

Upon completing the transaction, the ownership structure of the CTSL will comprise the SAPL holding a 60 percent stake while Hellmann will hold the remaining 40 percent.

This will pave the way for stronger collaboration between the two entities, according to the SAPL, a major local off-dock service provider for exporters and importers.

Shares of the SAPL soared 9.9 percent to Tk 22.2 per unit yesterday at the DSE.

The disclosure came six months after the 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 the SAPL's financial statement for the quarter that ended on September 30 last year, said the company, which handles over one-fifth of containerised exports and one-tenth of imports through Chattogram port.

The SAPL's earnings more than doubled to Tk 19 crore in July-September of the financial year 2024-25 ending in June this year from Tk 8.5 crore in the same period a year ago, according to its latest financial statement.

The SAPL owns 99 shares of the CTSL and the company has 29 prime movers with a similar unit of trailers to carry out its operations.