New Delhi, April 3 : SpiceJet has completed the hive off of its cargo and logistics division 'SpiceXpress' into a separate entity, SpiceXpress and Logistics Private Limited. The consideration for the slump sale will be discharged by SpiceXpress by issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of Rs 2,555.77 crore which will also strengthen the balance sheet of SpiceJet. The hive off is effective from April 1, 2023 and paves the way for SpiceXpress to raise funds independently. As per the airline, the hive off would strengthen SpiceJet's balance sheet, wipe out a substantial portion of the company's negative net worth and unlock significant value for the company and its shareholders. Ajay Singh, Chairman & Managing Director, SpiceJet, said, "The separation of our cargo and logistics arm is a stepping stone in our growth story which shall unfold in the times to come." "SpiceXpress will provide greater and differentiated focus to cargo and logistics business and will allow the possibility of raising capital for the business to accelerate its growth. The decision to hive off SpiceXpress is in sync with our long term business plan and will unlock significant valuation of the logistic business. Both SpiceJet and SpiceXpress have great potential and will complement each other well," he said. "The hive off will not only enable SpiceXpress to raise cash independently, it will significantly reduce SpiceJet's negative net worth. Having restructured over $100 million, outstanding dues to Carlyle Aviation Partner last month, the hive off will further strengthen and deleverage our balance sheet," he added. During the pandemic, SpiceXpress played a critical role in ensuring that vital trade routes between India and other countries remained intact. With India's transportation system coming to a virtual halt, SpiceXpress freighters and cargo planes took to the skies every single day to ferry a record supply of relief material, medicines and medical equipment to and from wherever was required. /IANS