Mumbai: The board of Gati on Tuesday approved the allotment of 13.3 million shares or 10.91 per cent of its equity on a preferential basis, as it embarks on an open offer to buy majority shares in the company.The preferential allotment would result in Allcargo acquiring 10.91 per cent stake in Gati.
Allcargo had acquired 2.7 million shares in Gati in the last week through open market purchases, said a statement from Allcargo.Post these transactions, Allcargo owns close to 13 per cent stake in Gati, which makes it the single largest shareholder of Gati, it added.In addition, a total of Rs 238 crore has been deposited into an escrow account set up as per Sebi norms, for a subsequent open offer transaction.
Recently, about 87 per cent of Gatis shareholders voted in favour of the allotment.
With this, the company is well on track to complete the process to acquire 44.5 per cent stake in Gati, said the statement.On December 5, Allcargo bought 10.38 million, or 8.51 per cent, shares in Gati for Rs 77.8 crore.
Depending on the response to the open offer, Allcargo aims to own about half of Gati.