Adani Logistics, Gateway Distriparks Resolve Dispute Over Snowman Deal
Further, Adani Logistics will continue as a minority shareholder with 26% stake in Snowman Logistics.
The firms said Adani Logistics 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.
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.
"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 Adani Logistics will be a minority shareholder in Snowman, it said adding, there are no pending claims or counter-claims by either of the parties.
In a separate regulatory filing, Snowman Logistics said: "GDL, Adani Logistics 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 and pursuant thereto, the arbitration invoked by GDL against Adani Logistics is withdrawn."
It said as per settlement agreement, Adani Logistics has no right to purchase and GDL has no obligation to sell its shareholding in Snowman to Adani Logistics 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.
"Adani Logistics 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 was 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.