Adani Logistics Ltd, a part of the diversified Adani group, has sold almost a fourth of its stake in Snowman Logistics Ltd. Adani Logistics had acquired the stake through an open offer it had initiated in March at ₹44 apiece in a failed attempt to take promoter stake in Snowman.
Adani Logistics sold nearly 12.7 million shares or a 7.61% stake in Snowman between 27 November and 14 December, as per data from the exchanges. These were sold at an average price of ₹59.21 a share, totalling nearly ₹75 crore. Adani now has 30.7 million shares or a 18.39% stake in Snowman.
Mint could not ascertain if the group plans to sell more shares of Snowman or completely exit the company, as Adani group declined to comment.
Adani Logistics had struck a deal in December 2019 to buy a 40.25% promoter stake in Snowman, along with an open offer to take another 26% from public shareholders. Adani was to pay ₹296 crore for the stake and ₹191 crore more for the public shareholding. However, the deal to acquire the promoter stake did not go through, even as the open offer triggered by it was successfully completed, thus landing Adani a 26% stake in Snowman.
On 11 May, Gateway Distriparks, the promoter of Snowman, said that the December pact to sell its stake in Snowman was no longer in force. On 22 May, Gateway said it has initiated arbitration proceedings against the Adani group.
Mint reported in May that the talks for the promoter stake sale had hit a hurdle because of a disagreement over valuation, with the pandemic hitting business, causing the Snowman stock price to fall. However, in July, the two parties said they had settled the dispute. The terms of the settlement state that Gateway Distriparks will continue as the sole promoter of Snowman with Adani Logistics as a minority shareholder.
“Adani Logistics shall not be involved in the day-to-day management and shall not have a right to nominate or appoint any director on the board (or committee(s)) of Snowman,” the exchange filing notifying the settlement said.
