Allcargo Logistics Ltd has become the largest shareholder of express logistics firm Gati Ltd after the board of Gati on Tuesday allotted 1.33 crore shares at ₹75 a share to Allcargo through a preferential allotment.
The preferential allotment, approved by the shareholders of Gati on January 7, takes Allcargo’s stake in Gati to 13 per cent. Allcargo paid ₹100 crore for the shares.
On December 5, Allcargo Logistics said it was acquiring a controlling stake in Gati for ₹416 crore, through a three-stage process.
Last week, Allcargo bought 27 lakh shares in Gati through open-market purchases.
Post these transactions, Allcargo owns close to 13 per cent of Gati, which makes it the single largest shareholder in the logistics firm, a company official said.
The final stage involved Allcargo making an open offer to buy 3,17,42,615 equity shares representing 26 per cent of the paid-up voting equity share capital (post preferential issue and vesting of stock options) from the retail shareholders of Gati at ₹75 per share, in accordance with the requirements of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
If the open offer is fully subscribed, Allcargo will end up with a 44.6 per cent stake in Gati.
The money required to fund the open offer (₹238 crore) has been deposited into an escrow account set up in line with SEBI norms.
Gati has received approval from 87 per cent of its shareholders for the stake sale.
With this, Allcargo is well on track to complete the process to acquire a 44.6 per cent stake in Gati. Allcargo is confident of closing the transaction as per regulatory norms and with due consideration to compliance and governance, the official said.