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Adani Logistics Ltd will continue as a minority shareholder with 26 per cent stake in Snowman Logistics Ltd without any right to nominate or appoint any director on the board of Snowman nor be involved in the day-to-day management or business operations of the cold chain company.
Adani Logistics and Snowman Logistics signed an agreement on Sunday to settle the dispute arising out of non-completion of the acquisition of the entire shareholding of 40.25 per cent stake from Gateway Distriparks Limited, the promoters of the Mumbai-listed cold chain company, in accordance with the share purchase agreement signed on December 27.
The transaction was done through Adani Logistics, a wholly-owned unit of Adani Ports and Special Economic Zone Ltd (APSEZ).
At ₹44 a share, the purchase of the 40.25 per cent stake from the promoters of Snowman would have cost Adani Logistics ₹296 crore.
Adani Logistics spent ₹191 crore to buy the 26 per cent stake from the public shareholders of Snowman, prior to the secondary purchase from the promoters of Snowman.
“The parties have agreed to not proceed with the secondary sale / purchase transaction and mutually settle existing disputes in relation to the non-completion of the secondary transaction and, on July 5, signed a settlement agreement,” said Adani Ports and Special Economic Zone Ltd (APSEZ) in a stock exchange filing.
The sole promoter
As per the terms of the settlement, GDL will continue as the sole promoter of Snowman and Adani Logistics will be a minority shareholder. There are no pending claims or counter-claims by either of the parties, said APSEZ.
GDL said in a separate filing to the stock exchange that it has withdrawn the arbitration proceedings initiated against Adani Logistics.
As per the settlement agreement, Adani Logistics “has no right to purchase, and GDL has no obligation to sell its shareholding in Snowman to Adani Logistics pursuant to the SPA or otherwise”.
GDL will continue to remain the sole promoter of Snowman, and shall be solely responsible for the management and business operations of Snowman, GDL said in its filing.
Snowman Logistics runs integrated cold chain logistics and provides warehousing, distribution and value-added services. It operates 31 temperature-controlled warehouses at 15 locations, with 1.04 lakh pallets warehousing capacity and 293 refrigerated vehicles (reefers).
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