Allcargo Logistics, a multimodal logistics firm, has acquired around 13% in express logistics firm Gati Ltd, the company said in a statement.
“In line with the approval by Gati’s shareholders at the EGM on the 7th Jan 2020, the board of Gati today allotted 1.33 crore shares at ₹75 apiece to Allcargo by way of preferential allotment. As part of this preferential allotment process Allcargo has already infused ₹100 crs into Gati. The preferential allotment would result in Allcargo acquiring 10.91 % stake in Gati,” Allcargo said.
In addition, last week Allcargo acquired 27 lakh shares in Gati through open market purchases. Post these transactions, Allcargo owns close to 13% stake in Gati, which makes it the single largest shareholder of Gati, the statement said.
Allcargo has also announced an open offer to acquire an additional upto 26% stake in the company from public shareholders. “100 % of the capital required to fund the open offer ( ₹238 crores) has been deposited into an escrow account set up as per SEBI norms, for open offer transaction,” Allcargo said.
“Gati has received an overwhelming response from its shareholders for the proposed stake sale to Allcargo Logistics with over 87 per cent of them voting in favour of the deal,” Allcargo added.
Allcargo is confident of closing this transaction as per regulatory norms and process of law and with due consideration to compliance and governance, the statement added.
The latest development comes even as a cloud of uncertainty hangs on the gate of the deal.
Mint reported on 16 January that the Securities and Exchange Board of India (Sebi) has sought clarifications on Allcargo Logistics Ltd’s proposed acquisition of Gati Ltd, amid a court dispute over ownership of the shares within Gati’s promoter family.
“Sebi has written to the merchant bankers managing the deal on 9 January and also the two companies seeking details on some of the complaints filed against the open offer,” a person aware of the development told Mint.
Allcargo Logistics had on 5 December 2018 proposed buying a 19.43% stake in Gati and signed a share purchase agreement. Allcargo is in the process of acquiring another 26% stake from Gati’s public shareholders through an open offer. The deal was to close by 30 March 2019.
However, Gati promoter Mahendra K. Agarwal’s estranged family, including his sons Dhruv and Manish, as well as his wife Neera, have disputed the ownership of shares and alleged oppression and mismanagement at Gati.
