The purchase price of Rs 44 per share is a 3.2 per cent premium to the market price of December 27, and a 12 per cent premium to the 60-day volume weighted average price (VWAP), said a company release.
“The acquisition is in line with our strategy and vision to be a leader in providing integrated logistics services in India and moving from port gate to customer gate. Cold chain is key product in customer gate strategy given India’s consumer driven demand,” Karan Adani, chief executive officer at APSEZ was quoted as saying.
The announcement of this acquisition by Adani has come at the time when India is grappling with economic slowdown where domestic companies of several sectors are cutting capex amid not-so-strong revenue visibility.
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 percent of the public shareholding in the company.
The acquisition is subject to customary condition precedents and is expected to close by March 31, 2020, informed Adani via release.
“We will double the (cold chain) capacity in next five years. With focus on increase in utilisation, higher realisation from product mix and operational efficiencies, this vertical will help further improve returns of logistics business,” Adani was quoted as saying.
Snowman Logistics has presence in 31 locations in the country across 15 cities. Promoter Gateway Distriparks had listed Snowman Logistics in 2014 and had plans to grow in neighbouring geographies in the long-term.