Mumbai, (Maharashtra) [India], Mar 5 : Allcargo Logistics is set to emerge as a controlling stakeholder in Gati as it has received approval from the Securities and Exchange Board of India (SEBI) on its open offer to acquire about 3.17 crore shares or 26 per cent stake in Gati at Rs 75 a share.
On full acceptance of the open offer, it will take Allcargo's stake in supply chain solutions major Gati to 46.83 per cent. This will mark the completion of the acquisition process which was initiated on December 5 last year.
The open offer is expected to be launched in March and closed by April.
Allcargo has already deposited Rs 238 crore -- equivalent to 100 per cent of the capital required to fund the open offer -- into an escrow account set up as per SEBI norms for the open offer transaction.
Preferential allotment and part purchase of promoter shares have also been completed by Allcargo in January. As part of this process, two directors of Allcargo have been appointed on the Gati board.
"The acquisition is in line with Allcargo Logistics' long-term strategy to strengthen its domestic business," said Chairman Shashi Kiran Shetty.
"It will further synergise our efforts to offer end-to-end services to our domestic and international customers. Apart from helping us consolidate our position as the true end-to-end logistics solutions provider, the acquisition will catapult us into the market-leading position in the domestic express logistics segment," he said in a statement.
Operating an asset-light and hub and spoke model, Gati currently has a presence in 727 districts in India. It has simplified door-to-door express logistics by creating a formidable network serving over 19,000 pin codes across the country.
With this acquisition, Allcargo said it will be able to offer single window solutions through a combination of ECU Worldwide and Gati at a scale that otherwise does not exist in India at present.
( With inputs from ANI )