Gateway Distriparks (GDL) on Monday said it has completed the acquisition of the entire stake held by the private equity Blackstone, in its subsidiary Gateway Rail Freight (GatewayRail) for ₹ 850 crore.

GDL has also acquired shares from the management of GatewayRail and with this GDL shareholding in GatewayRail is now 99.93 percent, on a fully diluted basis, the company statement said.

“Blackstone, GDL and GatewayRail have mutually agreed to terminate the arbitration proceedings initiated in December 2018. This buy out completes Blackstone’s exit from its investment in GatewayRail,” it said.

Commenting on the development, GDL chairman and MD Prem Kishan Gupta said, “with this acquisition, the GDL Group can harness synergy between its container freight station and rail transportation and inland container depot businesses and offer integrated services through its 12 locations in its pan-India network.”

He further said that there will be benefit through consolidation and allow the companies to enter into a global service contract with major shipping lines and non vessel owning common carrier to help improve realisations and growth in volume.

GDL Group is an integrated inter-modal logistics service provider having three verticals and operates container freight stations in Nhava Sheva, Chennai, Vizag, Kochi and Krishnapatnam.

GatewayRail is an intermodal operator that provides rail transport service through it inland container depots at Gurugram, Faridabad, Ludhiana, Ahmedabad and Domestic Container Terminal (DCT) at Navi Mumbai.

GDL and GatewayRail together have a capacity to handle 2.1 million TEUs per annum and warehousing space of 1.73 million sqft across its 12 container terminals.

Snowman Logistics, its third vertical, is engaged into cold chain logistics company with pan-India presence at 31 locations in 15 cities.

Gateway Distriparks share price ended at Rs 141.25, up by 6.56 per cent on the BSE.

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