Adani drops out of Snowman acquisition as Covid shrinks industry valuation

Snowman Logistics stock is down 35% since deal was announced last December; valuation also hit by Rs 13 cr loss reported by company in first nine months of FY20

Adani Logistics has decided not to go ahead with the acquisition of Snowman Logistics Ltd, a cold- chain company, after valuations in the industry fell sharply due to the ongoing Coronavirus pandemic, sources close to the deal said.

On Monday, Snowman Logistics was trading on the BSE at Rs 27.5 a share with a total market valuation of Rs 459 crore. In December last year, Adani Logistics had announced acquisition of 40 per cent stake in Snowman for Rs 296 crore at a price of Rs 42 a share.

“The stock of Snowman Logistics is down 35 per cent down