Logistic service provider Allcargo Global has acquired a 5.97-per cent stake in rival Gateway Distripark for Rs29 crore, in an open market deal.

Allcargo said that the transaction was "purely a treasury investment" and was funded from internal accruals.

Global private equity fund Blackstone Group LP has a 10.39-per cent stake in Allcargo.

The 6.1 million equity shares were bought by Sealand Terminals Pvt Ltd, a wholly-owned subsidiary of Allcargo from the Singapore government's investment arm Temsek Holdings Pte Ltd.

An announcement to this effect has been made by an unnamed Allcargo official in a notice to the Bombay Stock Exchange.

''It is purely a treasury investment and has nothing to do with consolidation,''

Shashi Kiran Shetty, chairman and managing director of Allcargo Global, said denied any acquisition motive saying "It is purely a treasury investment and has nothing to do with consolidation."

He also said, ''I do not have any plans to increase the stake in Gateway Distriparks. When the bids came up we saw value in this stock since we are into the same business. We have funded this acquisition from our internal accruals.''

Earlier this month, Shetty had said that the company saw acquisition opportunities and was evaluating them. ''It will take a little more time. It's better to wait and watch. I think more pain will come,'' he told reporters.

Shetty had also cautioned that Allcargo's profitability would be flat or down 15 per cent in 2009 due to the fall in volumes.

Analysts tracking both Allcargo and Gateway, however, do not rule out  the possibility of a future consolidation  even though there may be nothing on the horizon.

Mumbai-based Allcargo is a leading multi-modal transport operator and sub-container load consolidator with a global presence through franchisees and offices spread over 130 countries.

The company's seven key business areas include: multi-modal transport operations,  container freight stations, project cargo handling, airfreight, transport logistics, equipment hiring, oil rig and supply vessels management.

Delhi-based Gateway Distriparks Ltd owns and operates container freight stations and inland container depot operations in India with a container freight stations in Navi Mumbai and Chennai and inland conatiner depots near Delhi and Vishakapatnam.

Shares of Gateway Distriparks rose and closed at Rs44.15, higher by 2.56 per cent from yesterday from its previous Tuesday close on the BSE.

Meanwhile, Allcargo Global shares closed at Rs690.80 yesterday, down by 0.06 per cent from its last trading.