BackAllcargo increases stake in Gati to 20.8%
Allcargo bought an additional 7.5% stake (91 lakh shares) in Gati through two different transactions Allcargo is in the process of acquiring another 26% stake from Gati’s public shareholders through an open offer
PremiumMumbai: Allcargo Logistics Ltd, a multimodal logistics firm, on Tuesday said that it has increased its stake in express logistics firm Gati Ltd to 20.8% by acquiring an additional 7.5% stake.
Allcargo has bought an additional 91 lakh shares in Gati through two different transactions. The company directly bought 5.16% stake from the Gati promoters, pursuant to the share purchase agreement and acquired another 2.31% stake through open market purchases.
With the latest share purchase, Allcargo has consolidated its position as the single largest shareholder in Gati, the company said in a statement.
Through a preferential allotment following the approval by Gati’s shareholders at the EGM on 7 January and through open market purchases, Allcargo had acquired around 13% stake in Gati last week.
“Allcargo is on course to complete the transaction to acquire 44.5% stake in Gati. We are abiding by the regulatory and compliance norms while carrying out the transaction. With this acquisition, we will gain a leadership position in the domestic express transportation segment and develop capabilities to offer end-to-end transportation to our valued customers," said Shashi Kiran Shetty, Chairman, Allcargo Logistics.
The recent purchase of shares from the promoters marks the end of the second phase of a three-way deal that Allcargo intends to complete in due course, the company said.
Allcargo Logistics had on 5 December, 2018 proposed buying a 19.43% stake in Gati and signed a share purchase agreement. Allcargo is in the process of acquiring another 26% stake from Gati’s public shareholders through an open offer. The deal was to close by 30 March, 2019.
However, Gati promoter Mahendra K. Agarwal’s estranged family, including his sons Dhruv and Manish, as well as his wife Neera, have disputed the ownership of shares and alleged oppression and mismanagement at Gati.
Mint reported on 16 January that the Securities and Exchange Board of India (Sebi) has sought clarifications on Allcargo Logistics Ltd’s proposed acquisition of Gati Ltd, amid a court dispute over ownership of the shares within Gati’s promoter family.
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