Adani Ports and Special Economic Zone share price added nearly 2 percent intraday on December 30 after the company's subsidiary acquired 40 percent stake in Snowman Logistics.
Adani Logistics, a wholly-owned subsidiary of Adani Ports and SEZ, has signed definitive agreements to acquire 40.25 percent stake in Snowman Logistics from Gateway Distriparks.
The purchase price of Rs 44 per share represents a 3.2 percent premium to the market price of December 27, 2019 and a 12 percent premium to 60 day VWAP.
As part of the transaction, Adani Logistics will make a mandatory open offer for a maximum 26 percent of the public shareholding in the company.
The acquisition is subject to customary condition precedents and expected to close by March 31, 2020.
Research house CLSA has maintained buy call with a target at Rs 485 per share.
The company acquired snowman Logistics at the bottom of the cycle, while Snowman will add 16 percent to Adani Logistics revenues and 14 percent to EBITDA, feels CLSA.
Funding is not a problem as its post-acquisition leverage shall rise 1.8 percent in FY21 and company trades at a 12 percent discount to Indian companies such as CONCOR on FY21e EPS, it added.
At 11:05 hrs, Adani Ports and Special Economic Zone was quoting at Rs 367.45, up Rs 3.80, or 1.04 percent on the BSE.
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