SASkyways Air Services544890Subsidiary or JV

Board approves 40% stake transfer in Avito, Abu Dhabi step-down subsidiary and Vietnam corporate guarantee

Transfer 40% of its stake in wholly owned subsidiary Avito Global Freight Private Limited to Avito's Core Operating Team for Rs. 92.12 Lakhs; the company keeps 60% and Avito stays a subsidiary.

By ScoutQuest · Thu 15 Oct 2026, 9:25 PM IST · 3 min read

Stake Transfer Consideration

Rs. 92.12 Lakhs for 40% of Avito Global Freight; company retains 60%

Abu Dhabi Subsidiary Subscription Cost

up to Rs. 7.00 Crores

Corporate Guarantee to Techombank

VND 30,000,000,000, about INR 11.00 Crore

Three proposals were approved by the board

• Disinvestment of 40% of the company's existing shareholding in wholly owned subsidiary Avito Global Freight Private Limited
• Incorporation of a wholly owned subsidiary of Avito Global Freight Private Limited in Masdar City Free Zone, Abu Dhabi, United Arab Emirates
• A corporate guarantee to Techombank for Skyways SLS Logistik Company Limited (Vietnam)

The 40% stake transfer

The company will transfer 40% of its existing shareholding in Avito Global Freight Private Limited, its wholly owned subsidiary, to Avito's Core Operating Team, for a total consideration of Rs. 92.12 Lakhs. The update describes this dilution as part of the company's strategic expansion, done by transferring the shares to the core operating team.

After completion of the proposed transaction, Avito Global Freight will cease to be a wholly owned subsidiary but will continue to be a subsidiary, with the company retaining 60% of its paid-up equity share capital.

The buyers are seven members of Avito's own core team, holding the positions of Managing Director, Whole Time Director and Chief Executive Officer, Whole Time Director and Chief Financial Officer, and Vice Presidents of Operations, Sales and Marketing, Air Freight and Ocean Freight. Together they receive 40% of the subsidiary.

The update states that these buyers do not belong to the promoter, promoter group or group companies, and that the transaction does not fall within related party transactions.

The board also approved that the company and the Core Operating Team of Avito Global Freight will invest in Avito Global Freight Private Limited an aggregate amount not exceeding Rs. 2 crore (Rupees Two Crore only), in one or more tranches.

The Abu Dhabi step-down subsidiary

The board approved a proposal to incorporate a wholly owned subsidiary of Avito Global Freight Private Limited in Masdar City Free Zone, Abu Dhabi, United Arab Emirates. Since Avito Global Freight is itself a subsidiary of the listed company, the new entity will become a step-down subsidiary of Skyways Air Services.

The new entity belongs to the logistics industry, the nature of consideration is cash, and the cost of subscription is up to Rs. 7.00 Crores, in one or more tranches. Avito Global Freight will hold the entire shareholding of the new entity.

The stated purpose is to expand the business operations of Avito Global Freight, facilitate its presence in international markets and explore additional business opportunities. The incorporation and investment are subject to obtaining the necessary approvals and complying with applicable Indian and overseas statutory and regulatory requirements, including the foreign exchange and overseas investment framework.

The corporate guarantee

The board approved providing a corporate guarantee to Techombank on behalf of Skyways SLS Logistik Company Limited (Vietnam), a subsidiary of the company, for an amount not exceeding VND 30,000,000,000 (Thirty Billion Vietnamese dong), equivalent to INR 11.00 Crore approx., for issuance of a bank guarantee to International Air Transport Association (IATA).

The disclosure states the impact on the listed entity is a contingent liability to the extent of the corporate guarantee provided. It also states that the promoters have an interest in the entity being acquired, the nature of that interest being beneficiary interest because it is a subsidiary, and that the transaction is being done at arm's length.

Points to note

• The 40% transfer reduces the listed company's stake in Avito Global Freight to 60%, while the entity continues as a subsidiary.
• The proposed Abu Dhabi entity would sit one level below Avito Global Freight, as a subsidiary of a subsidiary.
• The corporate guarantee is a contingent liability for the listed company up to the guaranteed amount.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev