Adani Logistics Limited (ALL), wholly-owned subsidiary of Adani Ports and SEZ Limited (APSEZ), has signed definitive agreements to acquire 40.25% stake in Snowman Logistics Ltd. (SLL) from Gateway Distriparks Ltd. for ₹296 crore.
“The purchase price of ₹44 per share represents an 8% premium to the market price of December 27, 2019. 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 company,” said a company statement.
With this acquisition, ALL will foray into cold chain logistics as Snowman is a market leader in cold chain logistics with over 30% of capacity among integrated, organised cold chain service providers in India.
Karan Adani, CEO and whole time director of 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 a key product in the customer gate strategy given India’s consumer driven demand. We will double the capacity in the next 5 years. With focus on increase in utilisation, higher realisation from product mix and operational efficiencies, this vertical will help further improve returns in the logistics business.”
The acquisition is subject to customary condition precedents and expected to close by March 31, 2020.
