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. The consideration for the slump sale shall 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. 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.