Gateway Distriparks is up and about today, buzzing loud along with its group company, Snowman Logistics. In fact both have been up for the past three days and today it opened over 3.5% at Rs.118, to rise 13% to Rs.124. Snowman Logistics is also up – rising almost 7.5% to Rs.45.80.
The companies on Friday after market hours announced about its stake sale. Gateway will be selling its entire stake of 40.25% in Snowman Logistics to Adani Logistics.
This stake sale will bring in Rs.296 crore for Gateway, which will be used to reduce its debt.
Snowman is the largest cold chain provider in India and provides integrated temperature-controlled warehousing transportation and distribution services.
The transaction will be completed on or before 31st March 2020. HDFC Bank was the exclusive financial advisor to GDL for this Transaction.
Post this stake sale, Gateway will be back to focus only on its core business of container logistics.
Once this was announced on Friday, Adani Logistics too, along with Adani Ports announced an open offer to acquire 26% of Snowman at Rs.44/share.
In fact Adani Ports went up almost 2% today at Rs.370.45.