Adani Group enters cold chain logistics

Billionaire Gautam Adani’s port-to-power Adani Group has acquired majority stake in Snowman Logistics Ltd for 2.96 bln to foray into cold chain logistics. Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25 percent stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, the company said in a statement. Snowman is market leader in cold chain logistics with over 30 percent of capacity amongst integrated organised cold chain service providers in India. The acquisition gives Adani Logistics platform to double its capacity in the next five years. The buyout is in line with the firm’s strategy to move from port gate to customer gate.

“The purchase price of `44 per share represents a 3.2 percent premium to the market price of December 27, 2019 and a 12 per cent premium to 60 day average,” it said. As part of the transaction, Adani Logistics will make a mandatory open offer as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011 for a maximum 26 percent of the public shareholding in the Snowman Logistics. Acquisition is subject to customary condition precedents and expected to close by March 31, 2020. The company is targeting 15-plus logistics parks, 200-plus rakes, 5 million sq ft of warehouse space, over 15,000 containers, 2.5 million tonnes of grain silos and 25 inland waterways vessels by 2025, the statement said.

Adani Ports
Also, on Friday Adani Ports and Special Economic Zone said it would buy a 75 percent stake in Krishnapatnam Port Co Ltd for an enterprise value of ₹135.72 billion ($1.89 billion).