Gautam Adani-led Adani Ports and SEZ (APSEZ) has entered into cold chain logistics and warehousing business by acquiring a majority stake in Snowman Logistics for Rs 296 crore. The company has acquired 40.25 per cent stake in Snowman Logistics from its parent company, Gateway Distriparks, Adani Ports said in an exchange filing on Friday.
The company made the acquisition through its wholly-owned subsidiary, Adani Logistics. The price of the deal was Rs 44 per share, a 3.2 per cent premium to the market price of December 27, and a 12 per cent premium to the 60-day volume-weighted average price (VWAP). Shares of Snowman Logistics closed Friday's trade at Rs 42.65 apiece, up 4.28 per cent, on the BSE.
"Adani Logistics, a wholly owned subsidiary of Adani Ports, today announced it has signed definitive agreements to acquire 40.25 per cent stake in Snowman Logistics from Gateway Distriparks," the company said in a filing to the Bombay Stock Exchange.
As part of the transaction, Adani Logistics will make a mandatory open offer for a maximum 26 per cent of the public shareholding in the company, subjected to customary condition precedents and expected to close by March 31, 2020.
"Acquisition is subject to customary condition precedents and expected to close by March 31, 2020," it said in the regulatory filing.
Bengaluru-based Snowman Logistics is market leader in cold chain logistics with over 30 per cent of capacity amongst integrated organised cold chain service providers in India.
The company said that the acquisition in line with Adani Logistics' strategy to move from port gate to customer gate. It will also give the company platform to double its capacity in the next five years.
Commenting on the development, Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, "We are excited today to announce the acquisition of Snowman Logistics Ltd. 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."
"With focus on increase in utilisation, higher realisation from product mix and operational efficiencies, this vertical will help further improve returns of logistics business," Karan added.
By Chitranjan Kumar
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