Private equity major Blackstone has rejected an offer by port-based logistics company Gateway Distriparks (GDL) to buy the stake Blackstone holds in Gateway Rail Freight (GRFL). GRFL is the subsidiary of Gateway Distriparks. “We do not accept the call offer for the call consideration,” Blackstone said in its response to Gateway Distriparks’ call option notice, according to a regulatory filing by Gateway Distriparks.

However, Blackstone has offered to convert the compulsorily convertible preference shares (CCPS) it holds into equity shares. Blackstone GPV Capital Partners (Mauritius) V-H Ltd is the investor in GRFL and it had sent the response in its letter dated September 22, GDL said in the filing.

On August 24, GDL had offered to buy the CCPS held by Blackstone in GRFL for twice the amount the PE bought it for. Blackstone had invested close to ₹300 crore in New Delhi-based GRFL in 2010. The call option, which expired on Wednesday, was valid for 30 days.

GSL has the option to buy the shares after five years from the date of investment or Blackstone could sell it back to Gateway Distriparks at the end of 10 years.

GRFL, which owns and runs a fleet of 21 trains and more than 235 road trailers at its rail-linked terminals, handles rail operations for GDL.

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