As part of Allcargo Logistics’ stake buy plan in Gati, the board of the latter Tuesday allotted 13.3 million shares at Rs 75 each to the Avvashya Group company by way of preferential allotment.
The development comes amid Securities and Exchange Board of India (Sebi) seeking clarifications on the proposed acquisition of Gati Ltd, following a court dispute over ownership of shares within Gati’s promoter family. Sons and wife of Gati promoter Mahendra Agarwal, have approached the National Company Law Tribunal (NCLT) against him for alleged oppression and mismanagement in the company and have sought reconstitution of the board.
The Agarwal family members approached the Hyderabad bench of the NCLT seeking tribunal’s intervention in the affairs of the company.
Meanwhile, the first of the three phases of stake buy by Allcargo Logistics was realised today. Last week, Allcargo had acquired 2.7 million shares in Gati through open market purchases, a BSE filing said.
As part of this preferential allotment process, Allcargo has already infused Rs 100 crore into Gati resulting in Allcargo acquiring 10.91 percent stake in Gati, said the release. Post these transactions, Allcargo now owns close to 13 per cent stake in Gati, which makes it the single largest shareholder and marks Allcargo’s foray into express industry.
Gati 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, said Allcargo in a release.
The Avvashya Group company is now well on track to complete the process to acquire 44.5 percent stake in Gati, the total deal size of which is Rs 416 crore.
As planned, Allcargo has already taken steps to become a minority stake holder in its logistics park business and strengthen its presence in the express industry where it sees stronger growth potential.
Last week, private equity firm Blackstone announced it is investing Rs 380 crore in Allcargo Logistic’s logistics park business. Blackstone will be investing in both equity as well as debt capital of Allcargo’s business, it said.
Allcargo is into multimodal transport operations, container freight station, inland container depot operations, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks.
Source: Business Standard
