Gateway to pick 50.1pc in Snowman for Rs 48.12 cr

New Delhi, Nov 22: Logistics firm Gateway Distriparks Ltd today said its board has approved the acquisition of 50.10 per cent stake in Snowman Frozen Foods Ltd for Rs 48.12 crore.

Gateway will subscribe to 34.39 million new equity shares of Snowman at Rs 10.50 per share, the company said in a statement.

It will also buy 6.86 million shares at Rs 17.50 each from Amalgam Foods Ltd, bringing the latter's stake in Snowman to 1.21 per cent post-issue.

In addition to the above, the company may cause a third party to subscribe to and / or purchase upto five per cent of the post issue total paid up equity capital of Snowman such that the third party exercises its voting rights in accordance with the instructions of the company.

Snowman, which provides refrigerated logistics services with a pan-India presence, has 16 cold stores and operates 90 refrigerated trucks.

''As the business of Snowman is analogous to the business of company, this investment will assist it in expanding the scope of its operations,'' Gateway stated.

The company will enter into a share subscription and shareholders agreement with Snowman and its present shareholders, Mitsubishi Corporation, Mitsubishi Logistics Corporation and Nichirel Logistics Group Inc, all companies incorporated in Japan, who will continue as substantial shareholders of Snowman with an aggregate 48.69 per cent shareholding in Snowman.

This agreement may also provide for transfer restrictions on the shareholding of the parties to the agreement.

Rabo India Finance Ltd is the exclusive strategic and financial advisor in connection with the deal.

The transaction is subject to necessary approvals of the shareholders of Snowman, applicable statutory and regulatory approvals, and approvals of Snowman's lenders pursuant to its financing documents.

UNI