Adani Logistics, a wholly-owned subsidiary of Adani Ports on Friday announced its plans to acquire cold-chain operator Snowman Logistics with the latter’s promoter Gateway Distriparks Ltd making a complete exit.
The Adani Group company will buy the 40.25% stake of Gateway Distriparks for a consideration of Rs 296 crores. At Rs 44 per share, the deal gives a premium of 3.2% over Snowman Logistics’ closing price on the exchanges on Friday. The sale is expected to be completed within 45 days, as per a regulatory filing.
“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,” said Karan Adani, the chief executive of Adani Ports and Special Economic Zone Limited.
Adani Logistics will also make an open offer for a maximum of 26% of the public shareholding in the company as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011.
Snowman Logistics owns 293 refrigerated vehicles, or reefers, and 31 temperature-controlled warehouses at 15 locations across the country. It has a total warehousing capacity of 1,04,343 pallets.
The company incurred a net loss of about Rs 10.4 crore during the first half of the ongoing financial year. In FY19, the company had made a profit of Rs 9.72 crore on a revenue of Rs 232.55 crore.
