Allcargo Logistics on Tuesday said it has acquired about 13 percent 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 percent stake in Gati, according to a PTI report.
"In line with the approval by Gati's shareholders at the EGM (extraordinary general meeting) on 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 percent 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 percent stake in Gati, which makes it the single-largest shareholder of Gati. Hundred percent 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.
Gati family rift
On 16 January, a report in Mint said that the Securities and Exchange Board of India (SEBI) has sought clarifications on Allcargo Logistics Ltd’s proposed acquisition of the Hyderbad-based Gati Ltd, amid a court dispute over ownership of the shares within Gati’s promoter family.
“SEBI has written to the merchant bankers managing the deal on 9 January and also the two companies seeking details on some of the complaints filed against the open offer," a person aware of the development told Mint. But the promoter-Mahendra K Agarwal’s estranged family, including his sons Dhruv and Manish, as well as his wife Neera, disputed the ownership of shares and alleged oppression and mismanagement at Gati, the Mint report said.
Gati was part of the assets of TCI, which was split among Mahendra Agarwal and his three brothers in 1998.
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Updated Date: Jan 22, 2020 08:52:53 IST