NEW DELHI: Adani Logistics Ltd (ALL) and Gateway Distriparks Ltd (GDL) on Monday said they have resolved their dispute over sale of controlling stake in Snowman Logistics.
Further, Adani Logistics will continue as a minority shareholder with 26 per cent stake in Snowman Logistics.
The firms said ALL will not have any right to nominate or appoint any director on the board of Snowman and it will not be involved in the day-to-day management or business operations of the cold chain company, Snowman.
As per the settlement among the three parties, GDL will continue to remain the sole promoter of Snowman and shall be solely responsible for the management and business operations of Snowman.
Last year, ALL, the subsidiary of Adani Ports and Special Economic Zone (APSEZ) had announced signing of a definitive agreement to acquire 40.25 per cent stake in Snowman Logistics from Gateway Distriparks for Rs 296 crore.
"We would like to notify that the parties have agreed to not proceed with the secondary sale / purchase transaction and mutually settle existing disputes in relation to the non-completion of the secondary transaction and on July 5, 2020, have signed a settlement agreement," APSEZ said in a regulatory filing to the BSE.
As per the terms, GDL will continue as the sole promoter of Snowman and ALL will be a minority shareholder in Snowman, it said adding, there are no pending claims or counter-claims by either of the parties.
In another regulatory filing, Snowman Logistics said: "GDL, ALL and Snowman ... have now mutually resolved their disputes. The parties have signed a settlement agreement on July 5, 2020... and pursuant thereto, the arbitration invoked by GDL against ALL is withdrawn."
It said as per settlement agreement, ALL has no right to purchase and GDL has no obligation to sell its shareholding in Snowman to ALL pursuant to the share purchase agreement or otherwise and 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," Snowman Logistics said.
GDL in a separate BSE filing said, as per settlement, "There are no further claims or counter claims by either party against each other in relation to the SPA."
APSEZ in May had said its subsidiary ALL is still in talks to buy GDL''s 40.25 per cent stake in Snowman Logistics.
To which, GDL had said the proposed sale of entire 40.25 per cent stake of Gateway Distriparks in cold chain operator Snowman Logistics to Adani Logistics was called off due to repudiation of the agreement by the acquirer.