Home / Companies / News /  Snowman Logistics’ stake sale to Adani gets murky

Adani Ports and Special Economic Zone Ltd, whose plan to buy a controlling stake in cold chain logistics company Snowman Logistics Ltd has hit a hurdle, has refuted claims by Snowman’s promoters on the deal.

“ALL (Adani Logistics Ltd) has received a letter issued by Gateway Distriparks Ltd in relation to a purported repudiation of the share purchase agreement and ALL has duly responded to the same. ALL has categorically denied the correctness and basis of the statements, assertions and claims being made by Gateway Distriparks Ltd," Adani said in a regulatory filing late Monday. This followed a 11 May announcement by Snowman’s promoter, Gateway Distriparks Ltd that the deal to sell promoter stake to Adani has been called off as “the condition for completion of transaction by 31 March 2020 was not met by the Acquirer despite without prejudiced good faith attempts to resolve the matter, and the Agreement is not in force due to repudiation thereof by the Acquirer."

ALL, a unit of Adani Ports, struck a deal last December to buy a 40.25% promoter stake in Snowman, along with an open offer to take another 26% from public shareholders. Adani was to pay 296 crore for the promoter share and another 191 crore for the public shareholding.

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