Gateway Distriparks to acquire ICD at Kashipur for Rs 156 crore; Stock down 2%

2 Nov 2022 , 12:34 PM

Gateway Distriparks Limited (GDL) has signed a Share Purchase Agreement (SPA) with Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL) and its majority shareholders namely, Apollo LogiSolutions Limited, India Glycols Limited and Kashipur Holdings Limited on October 31, 2022 to acquire KIFTPL.

As per the filing, the agreed purchase consideration for the acquisition of 99.92% shareholding of KIFTPL from its shareholders is Rs156 crore, subject to certain pre-closing and post-closing adjustments in accordance with the terms of the SPA, which is expected to close at the end of Q3 of FY 2022-23.

The process to acquire the remaining 0.08% shareholding from Fourcee Infrastructure Equipments Private Limited, which is in liquidation, has been initiated.

KIFTPL owns and operates a rail connected inland container depot (ICD) at Kashipur, Uttarakhand. The facility is spread over 41 acres, has three rail sidings, and 17,000 square feet of warehousing space. The target market in the region includes various industries such as paper products, wastepaper, chemicals, home furnishings, handicrafts, automotive parts, polyfilms, soda ash and other industrial goods.

Currently KIFTPL provides only terminal services, while rail services are provided by other container train operators. With this planned acquisition, GDL will provide exclusive rail services to this ICD using its existing fleet of 31 trains, in addition to offering all terminal services and road transportation, thereby transitioning this ICD to a full multimodal logistics park.

At around 12:39 PM, Gateway Distriparks was trading at Rs72.20 per share lower by 1.90% on the BSE.

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