Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25 per cent stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, the company said in a statement.
Snowman is market leader in cold chain logistics with over 30 per cent of capacity amongst integrated organised cold chain service providers in India.
The acquisition gives Adani Logistics platform to double its capacity in the next five years. The buyout is in line with the firm's strategy to move from port gate to customer gate.
"The purchase price of Rs 44 per share represents a 8 per cent premium to the market price of December 27, 2019 and a 12 per cent premium to 60 day average," it said.
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 per cent of the public shareholding in the Snowman Logistics.
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, "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".
Incorporated in 1994, Snowman Logistics is in the business of integrated cold chain logistics providing warehousing, distribution and value added services.
With over 25 years of expertise, the firm is the largest organized player in the country with pan India presence operating 31 temperature-controlled warehouses at 15 strategic locations. The company infrastructure includes warehousing capacity of 1,04,343 pallets and 293 refrigerated vehicles.
Adani Logistics has expertise in handling varied customer across segments like retail, industrial, bulk, break-bulk, liquids, auto and grain handling. It currently operates 5 logistics parks, 55 rakes, 400,000 sq ft of warehousing space, 5,000-plus containers, 0.9 million tonnes of grain silos and 9 inland waterways vessels.
The company is targeting 15-plus logistics parks, 200-plus rakes, 5 million sq ft of warehouse space, over 15,000 containers, 2.5 million tonnes of grain silos and 25 inland waterways vessels by 2025, the statement said.
Adani Ports and Special Economic Zone (APSEZ), a part of globally diversified Adani Group, is the largest port developer and operator in India. Its 10 strategically located ports and terminals - Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai - represent 24 per cent of the country's total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transhipment port at Vizhinjam, Kerala. ANZ MR MR