Gateway pays Rs 48cr for 50% stake in Snowman

Gateway Distriparks, a logistics company, will acquire 50.10% stake in Kerala-based cold chain logistic service provider Snowman Frozen Foods for Rs 48.12 crore.

According to a release issued by Gateway to the BSE today, the board of directors, which met today, approved the acquisition of 50.10% of the total paid-up equity capital of Snowman Frozen Foods through the subscription of 4.12 crore equity shares.

The company subscribed to 3.43 crore new equity shares of Snowman at Rs 10.50 per share, and purchased 68.61 lakh existing equity shares at Rs 17.50 each from Amalgam Foods, a shareholder of Snowman.

Amalgam Foods would continue to remain a shareholder of Snowman with a holding of 1.21% of the post issue total paid-up equity capital.

"The company would enter into a share subscription agreement with Snowman and its Japan-based shareholders - Mitsubishi Corporation, Mitsubishi Logistics Corporation and Nichirel Logistics Group Inc. The three Japan-based companies would continue to be shareholders of Snowman with a total of 48.69% stake," the release added.