Gateway Distriparks to increase Stake in Subsidiary; stock up 4%

MUMBAI: Shares of Gateway Distriparks added 4 percent intraday Wednesday as company is going to buy Blackstone’s stake in Gateway Rail.

The company has entered into a share purchase agreement for acquiring the compulsorily convertible preference shares (CCPS) and equity shares held by Blackstone GPV Capital Partners (Mauritius) V-H in Gateway Rail Freight.

The company is acquiring the entire CCPS and equity shares held by Blackstone in Gateway Rail Freight for cash consideration of Rs 810 crore.There are no governmental or regulatory approvals required for the acquisition.

The acquisition is expected to be completed on or before September 28, 2018.With this acquisition company’s holding in its subsidiary, Gateway Rail Freight to go up from 50.001 percent to 99.80 percent.

At 12:19 hrs Gateway Distriparks was quoting at Rs 178.20, up Rs 1.95, or 1.11 percent on the BSE.