Allcargo Logistics turns into single-largest shareholder in Gati after it acquires practically 13% stake in courier supply providers agency
Allcargo Logistics on Tuesday mentioned it has acquired about 13 p.c stake in categorical distribution and provide chain options supplier Gati Ltd.
It mentioned that the agency is effectively on observe to finish the method to accumulate 44.5 p.c stake in Gati, in line with a PTI report.
“In line with the approval by Gati’s shareholders at the EGM (extraordinary general meeting) on January 7, 2020, the board of Gati today (on Tuesday) allotted 1.33 crore shares at Rs 75 apiece to Allcargo by way of preferential allotment,” Allcargo mentioned in a press release.
As a part of this preferential allotment course of, Allcargo has already infused Rs 100 crore into Gati, it mentioned.
The preferential allotment, it mentioned, would end in Allcargo buying 10.91 p.c stake in Gati.
Allcargo had acquired 27 lakh shares in Gati within the earlier week via open market purchases.
“After these transactions, Allcargo owns close to 13 percent stake in Gati, which makes it the single-largest shareholder of Gati. Hundred percent of the capital required to fund the open offer (Rs 238 crore) has been deposited into an escrow account set up as per Sebi norms, for open offer transaction,” the assertion mentioned.
Allcargo mentioned it’s assured of closing this transaction as per regulatory norms and strategy of regulation and with due consideration to compliance and governance.
Gati household rift
On 16 January, a report in Mint mentioned that the Securities and Change Board of India (SEBI) has sought clarifications on Allcargo Logistics Ltd’s proposed acquisition of the Hyderbad-based Gati Ltd, amid a court docket dispute over possession of the shares inside Gati’s promoter household.
“SEBI has written to the service provider bankers managing the deal on 9 January and likewise the 2 corporations looking for particulars on a number of the complaints filed in opposition to the open supply,” an individual conscious of the event instructed Mint. However the promoter-Mahendra Okay Agarwal’s estranged household, together with his sons Dhruv and Manish, in addition to his spouse Neera, disputed the possession of shares and alleged oppression and mismanagement at Gati, the Mint report mentioned.
Gati was a part of the assets of TCI, which was cut up amongst Mahendra Agarwal and his three brothers in 1998.
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