Allcargo Logistics, the largest player in the private sector logistics space, has acquired an additional 7.5 per cent stake in Gati, becoming the single largest shareholder in the express logistics company with 20.8 per cent stake.
It can be noted that late last November the Shashi Kiran Shetty-led company had announced plans to buy 44.5 per cent in Gati for Rs 416 crore in a three-way deal.
The latest stake purchase comes even as Allcargo is awaiting Sebi nod to begin an open offer for picking up an additional 26 per cent in the Hyderabad-based company.
The latest share purchase is done through a preferential allotment in line with the Gati's shareholders at the extraordinary general meeting (EGM) on January 7, as well as open market purchases aggregating to an additional 91 lakh shares.
While Gati promoter sold 5.16 per cent stake to Allcargo pursuant to the share purchase agreement, another 2.31 per cent was bought from the open market on Tuesday, Allcargo said in a statement.
The company did not disclose the price at which the shares were bought on Tuesday. While Gati shares closed 0.73 per cent up at Rs 69.40 on the BSE, the Allcargo counter closed 1.1 per cent down at Rs 117.05.
It can be noted that Allcargo had acquired close to 13 per cent stake on January 21 and 8.5 per cent early December.
"Allcargo is on course to complete the transaction to acquire 44.5 per cent stake in Gati. We are abiding by the regulatory and compliance norms while carrying out this transaction," Shetty, chairman of Allcargo, was quoted as saying in the statement.
He further said on completion of the deal, Allcargo will gain a leadership position in the domestic express logistics segment and develop capabilities to offer end-to-end services to its customers.
The recent share purchase from the promoters marks the end of the second phase of a three-way deal that Allcargo intends to complete in due course.
It can be noted that on January 8, more than 87 per cent of Gati shareholders had voted for the sale of the company to Allcargo despite a concerted bid by the estranged family of Gati promoters to scuttle the deal.
Gati founder Mahendra Agarwal's wife Neera and sons Dhruv and Manish had in December approached regulator Sebi to stall the open offer from Allcargo, citing various court cases against Agarwal and a Hyderabad court order to attach his 1.6 million shares.
Earlier this month, global private equity major Blackstone had agreed to pump Rs 380 crore into an Allcargo arm engaged in warehousing through a combination of equity and debentures worth up to Rs 380 crore, Allcargo had said on January 13.
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