Gateway Distriparks Limited and Adani Logistics Limited agree on a settlement.
Gateway Distriparks (“GDL”) and Adani logistics Limited (“ALL”) have resolved their disputes mutually in context to Snowman Logistics share purchase by Adani Logistic Limited. Gateway Distriparks Limited (“GDL”) had initiated arbitration proceeding against Adani Logistics Limited (“ALL”) in relation to the proposed sale of entire shareholding held by GDL in Snowman Logistics Limited (“Snowman”) to ALL in terms of the share purchase agreement dated 27 December 2019, as amended (“SPA”).
The arbitration invoked by GDL against ALL is withdrawn, and the parties have signed a Settlement Agreement on 5th June 2020. The parties have agreed to the following key points:
- ALL has no right to purchase and GDL has no obligation to sell its shareholding in Snowman to ALL pursuant to the SPA or otherwise.
- GDL will continue to remain the sole promoter of Snowman and shall be solely responsible for the management and business operations of Snowman.
- ALL shall not be involved in the day to day management or business operations of Snowman and shall not have a right to nominate or appoint any director on the Board (or committee(s)) of Snowman.
- There are no further claims or counterclaims by either party in relation to the SPA.
Expansion in Siliguri
Further, Snowman Logistics Ltd. has announced further capacity expansion and is currently adding to their pallet capacity across the country. Snowman Logistics has commenced construction at the Siliguri facility and is further adding pallet capacity to Taloja and Krishnapattanam facilities taking the total pallet capacity to 1, 13,208 with a presence in 16 cities catering to the key markets of Mumbai, Chennai, Bengaluru, and Kolkata.
Construction in Siliguri prioritized basis customer demand wherein existing set of customers wanted “global standard facilities” in line with other Snowman facilities across the country to reach out to the markets. Snowman will add 4200 pallets at Siliguri and will expand Taloja (Mumbai) and Krishnapattanam facilities by a total of 3000 pallets. All these facilities are scheduled to be up and running before this financial year-end.
Snowman caters to its comprehensive network of reputed clients, which source and consume temperature-sensitive products in bulk amounts. It caters to various services like dairy products including butter and cheese, canned food Items, Poultry and Meat, Seafood, Healthcare, and pharmaceutical products.
