Adani enters into cold chain logistics with acquisition of Snowman Logistics
Billionaire Gautam Adani's port-to-power Adani group has acquired majority stake in Snowman Logistics Ltd for ₹296 crore to foray into cold chain logistics.Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25% 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% 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 ₹44 per share represents a 3.2% 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% of the public shareholding in the Snowman Logistics.