Bangalore-based logistics firm Gateway Distriparks Ltd (GDL) has offered to purchase stake held by private equity firm Blackstone in its subsidiary Gateway Rail Freight Ltd (GRFL), as per the terms of the agreement between both of them, the company said in a stock market disclosure.
Blackstone had invested close to Rs 300 crore in New Delhi-based Gateway Rail Freight Ltd back in 2010, although the deal was announced in November 2009. GDL said it has offered to buy the stake for Rs 600 crore ($90 million).
It added that the PE firm has the option to either accept or reject the offer within 30 days, it said on Monday.
Although, Blackstone stands to double the value of its investment in a four-year period on local currency, given the slide in value of rupee, in dollar terms it would make around 40 per cent in returns in dollar terms, as per VCCircle estimates.
Early this year, Blackstone had written to Gateway Distriparks seeking an IPO of GRFL in accordance with the terms of the share subscription & shareholders’ agreement dated November 9, 2009.
An email query sent to Prem Kishan Gupta, deputy chairman and managing director of Gateway Distriparks, on whether the company is looking at a buyback as an alternative to float the IPO of the unit did not elicit any response till the time of filing this article.
When contacted by VCCircle, Blackstone's spokesperson declined to comment whether it wants to opt for the buyback or stay put till the IPO is floated.
Founded in 2007, Gateway Rail Freight provides intermodal logistics and operates its own Inland Container Depots/Dry Ports. It operates rail linked facilities at Garhi-Harsaru (Gurgaon, Haryana), Ludhiana (Punjab), Asaoti (Faridabad, Haryana) and Kalamboli (Navi Mumbai).
The company owns and operates a fleet of 21 trains and over 235 road trailers at its rail linked terminals. Gateway Rail operates regular container train service from these ICDs/Dry Ports to the maritime ports at Nhava Sheva, Mundra and Pipavav, transporting import and export as well as domestic containers, according to its website.
Shares of GDL last traded at Rs 328.85 each, down 2.40 per cent on BSE in a weak Mumbai market on Monday.