Allcargo acquires nearly 13 per cent stake in Gati

Allcargo Logistics on Tuesday said it has acquired about 13 per cent stake in express distribution and supply chain solutions provider Gati Ltd.

It said that the firm is well on track to complete the process to acquire 44.5 per cent stake in Gati.

"In line with the approval by Gati's shareholders at the EGM (extraordinary general meeting) on the January 7, 2020, the board of Gati today (on Tuesday) allotted 1.33 crore shares at Rs 75 apiece to Allcargo by way of preferential allotment," Allcargo said in a statement.

As part of this preferential allotment process, Allcargo has already infused Rs 100 crore into Gati, it said.

The preferential allotment, it said, would result in Allcargo acquiring 10.91 per cent stake in Gati.

Allcargo had acquired 27 lakh shares in Gati in the previous week through open market purchases.

"After these transactions, Allcargo owns close to 13 per cent stake in Gati, which makes it the single-largest shareholder of Gati. Hundred per cent of the capital required to fund the open offer (Rs 238 crore) has been deposited into an escrow account set up as per Sebi norms, for open offer transaction," the statement said.

Allcargo said it is confident of closing this transaction as per regulatory norms and process of law and with due consideration to compliance and governance.