Gateway Distriparks to acquire ICD Kashipur - Business2Business

New Delhi: Gateway Distriparks Limited (GDL) has signed a Share Purchase Agreement (SPA) to acquire Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL).

“The agreed purchase consideration to acquire 99.92% of the shares of KIFTPL from its shareholders is Rs 156 crore, subject to certain pre-closing and post-closing adjustments under the terms of the SPA, which is expected to eventually close. in the third trimester. quarter of fiscal year 2022-23, "the company said. In a press release, the acquisition of the remaining 0.08% of Fourcee Infrastructure Equipments Private Limited, which is in the process of being liquidated.

KIFTPL owns and operates an Inland Rail Connected Container Depot (ICD) in Kashipur, Uttarakhand. The facility spans 41 acres, has three rail sides, and 17,000 square feet of storage space. The target market in the region includes various industries, such as paper products, waste paper, chemicals, home furnishings, handicrafts, auto parts, plastic films, soda ash, and other industrial products.

"KIFTPL currently only provides terminal services, while rail services are provided by other container train operators. With this planned acquisition, GDL will provide exclusive rail services for this ICD using its existing fleet of 31 trains, in addition to offering all services of terminal and terrestrial services". transportation and thus the transfer of the ICD to a full multimodal logistics complex.”

By utilizing the strength of the existing network of ICD devices and offering profitable rail services through a hub-and-spoke model, the company will be able to significantly increase volumes at the ICD. Current volumes handled at ICD Kashipur are an average of 3,000 TEUs per month.

"We are in a high growth phase and we see a lot of potential in the railway sector for our business. We already announced the start of construction of the new ICD in Jaipur last month. With this new acquisition planned, we will have 11 container terminals across the India Prem Kishan Das said Gupta, President and CEO of GDL: "We will continue to explore opportunities to expand our presence through the foundation of projects and new companies."

The proposed transaction is subject to customary approvals and other conditions precedent with which KIFTPL and its shareholders must comply.

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