Adani forays into cold chain logistics business
New Delhi, December 27
Billionaire Gautam Adani’s port-to-power Adani Group has acquired majority stake in Snowman Logistics Ltd for Rs 296 crore to foray into cold chain logistics.
Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25% stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, the company said.
Deal dynamics
As part of the transaction, Adani Logistics will make a mandatory open offer as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011 for a maximum 26% of the public shareholding in the Snowman Logistics
AdvertisementAcquisition is subject to customary condition precedents and expected to close by March 31, 2020
The buyout gives Adani Logistics platform to double its capacity in the next five years. It is in line with the firm’s strategy to move from port gate to customer gate
Snowman is market leader in cold chain logistics with over 30% of capacity among integrated organised cold chain service providers in India.
“The purchase price of Rs 44 per share represents a 3.2% premium to the market price of December 27, 2019 and a 12% premium to 60-day average,” it said.
As part of the transaction, Adani Logistics will make a mandatory open offer as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011 for a maximum 26% of the public shareholding in the Snowman Logistics.
Karan Adani, CEO, APSEZ, said, “The acquisition is in line with our strategy and vision to be a leader in providing integrated logistics services in India and moving from port gate to customer gate. Cold chain is key product in customer gate strategy given India’s consumer driven demand. We will double the capacity in next 5 years.” — PTI
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