Snowman Logistics Ltd shares jumped over 14% in intra-day trade on Wednesday, i.e. 6 November, after a media report said that Adani Ports and Special Economic Zone Ltd’s logistics subsidiary is in advanced talks to buy the company.
At 2:40 pm, shares of Snowman Logistics were trading at Rs 40.35, up 5.4%, after hitting the day’s high of Rs 43.85. Meanwhile, shares of Adani Ports were trading higher by around 0.9% at Rs 393.40.
A CNBC-TV18 report said that parent company of Snowman Logistics, Gateway Distriparks, is looking to sell the loss-making firm to raise funds and reduce debt. Snowman is engaged in cold chain logistics with a pan-India presence at 31 locations across 15 cities.
To recall, Gateway Distriparks had listed Snowman Logistics in September 2014 and currently owns 40.25% stake in the company. According to the report, Gateway Distriparks has around Rs 600 crore of debt on its books and is looking at avenues to monetise the poorly 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, according the report.
Meanwhile, Adani Ports’ logistics subsidiary, Adani Logistics, was also in news recently when it acquired Adani Agri Logistics from Adani Enterprises in an all-cash deal at a proposed enterprise value of Rs 1,662 crore.