Adani Forays into Cold Chain Logistics with INR 296 Cr acquisition of Snowman Logistics
Adani Logistics Limited (“ALL”), a wholly owned subsidiary of Adani Ports and SEZ Limited (“APSEZ”) announced to signed definitive agreements to acquire 40.25% stake in Snowman Logistics Ltd. from Gateway Distriparks Ltd. The purchase price of INR 44 / share represents a 3.2% premium to the market price of December 27, 2019 and a 12% premium to 60 day VWAP.
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. Acquisition is subject to customary condition precedents and expected to close by March 31, 2020.
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 utilization, higher realization from product mix and operational efficiencies, this vertical will help further improve returns of logistics business”