Gateway Distriparks Ltd (GDL) is allowing non-promoter investors to exit from its cold chain subsidiary Snowman Logistics Ltd (SLL) through an IPO and pre-IPO deals. SLL has filed draft prospectus with the market regulator SEBI for offloading 25 per cent stake.
GDL has informed the BSE that it has executed a share-sale agreement with Nichirei Logistics Corporation to acquire Nichirei’s stake of about 6 per cent (7.4 million shares) in SLL for about Rs 25.90 crore.
Post-acquisition and prior to the IPO, GDL’s holding in SLL will increase to about 54 per cent, which would give GDL management control in SLL.
It also said SLL has filed the draft red herring prospectus with SEBI on Thursday for a public offering of 42 million shares.
Investors roped in
In June, GDL, through an equity dilution had roped in investors, including private equity firm Norwest Venture Partners (Mauritius), IFC and three Japanese companies — Mitsubishi Corp, Mitsubishi Logistics Corp and Nicheri Logistics Group Inc.
The execution of the deals was undertaken in two stages.
First, GDL bought out 5 per cent stake of World Bank arm IFC in SLL for Rs 18 crore. This happened before the multi-way deals with Norwest were put into effect.
The deal saw GDL maintain its majority holding post all transactions in SLL, company sources told Business Line .
Norwest had paid Rs 60 crore for 14.3 per cent in SLL. This leg of the deals was through proportionate dilution of the three existing shareholder groups — GDL, the Japanese entities and IFC.
As a result, shareholding of GDL had come down from 54 per cent to 51.5 per cent.
Expects Rs 150 cr
SLL, which provides temperature-controlled storage and transportation solutions to companies dealing in dairy products, ice creams, processed foods, seafoods, poultry and meat, expects to raise “something around Rs 150 crore for its business expansion,” said a source. It has planned to acquire or build half a dozen cold storage facilities.
Incidentally, promoter holding in GDL stands at 41 per cent, while combined holding of institutional investors, including mutual and pension funds as well as insurance companies, is over 29 per cent.
On Friday, the GDL stock closed up around 1.65 per cent at Rs 107.55, on the BSE.