A leading name in its category, Allcargo Logistics, has announced that it has received the necessary approval from SEBI, India’s capital markets regulator, on its open offer to acquire approximately 3.17 crore shares or 26% stake in Gati, a premium player in the express segment, at INR 75 a share.
Allcargo is already the biggest shareholder of Gati following the allotment of 13.3 million shares by the Gati board earlier in January. On full acceptance of the open offer, Allcargo’s stake in Gati will jump to 46.83%. The acceptance of the offer will mark the completion of the acquisition process that took off on December 5, 2019. The open offer is expected to be launched in March 2020 and closed by April 2020, the company said in a statement.
Allcargo has already deposited INR 238 crore capital required to fund the open offer – into an escrow account set up as per SEBI norms for the open offer transaction.
It has also completed preferential allotment and part purchase of promoter shares, the statement said. Two directors of Allcargo have been appointed on the Gati Board who are overseeing the entire acquisition procedure.