Adani Ports and SEZ’s logistics subsidiary is in advanced talks to buy Snowman Logistics, sources with direct knowledge of the development, reported CNBC-TV18.
Gateway Distriparks, the parent company of Snowman Logistics, is looking to sell the loss-making firm to raise funds and reduce debt, said the sources, who did not want to be named.
Gateway Distriparks had listed Snowman Logistics in September 2014 and it currently owns 40.25 percent stake in the company. Gateway has around Rs 600 crore of debt on its books and is looking at avenues to monetise the poor performing assets.
Gateway Distriparks had recently bought back Blackstone’s stake in Gateway Rail Freight for Rs 850 crore, ending an arbitration proceeding with the private equity investor regarding the terms of exit.
Snowman Logistics is engaged in cold chain logistics with a pan-India presence at 31 locations in 15 cities.
Adani Logistics, a 100 subsidiary of listed company Adani Ports & SEZ, recently acquired Adani Agri Logistics from Adani Enterprises in an all-cash deal at a proposed enterprise value of Rs 1,662 crore.
Snowman Logistics and Gateway Distriparks, however, did not respond to the query. Adani Ports & SEZ too did not comment on the story.