The board of Gati cleared the allotment of 13.3 million shares or 10.91 percent of its equity on a preferential basis on Tuesday. This preferential allotment will consequently lead to AllCargo acquiring 10.91 percent stake in Gati, making it the single largest shareholder.
In the past week, AllCargo had acquired 2.7 million shares in Gati through open market purchases, as per a statement from the company.
“Post these transactions, AllCargo owns close to 13 percent stake in Gati, which makes it the single largest shareholder of Gati,” it added.
Additionally, a total of Rs 238 crore has been deposited into an escrow account set up abiding by Sebi norms, for a subsequent open offer transaction. Recently, about 87 percent of Gati’s shareholders voted in favour of the allotment. “With this, the company is well on track to complete the process to acquire 44.5 percent stake in Gati,” said the statement.
On December 5, AllCargo bought 10.38 million, or 8.51 percent, shares in Gati for Rs 77.8 crore. Depending on the response to the open offer, AllCargo aims to own about half of Gati.
This latest development comes amid the cloud of uncertainty that had hung over the deal owing to disputes. On 8 January, Gati had announced that it had received overwhelming support from its shareholders, with over 87% of them voting in favour of the proposed stake sale to AllCargo Logistics, amid strong attempts to hold back the deal by a section of the promoter family of Gati.