Gateway Distriparks Ltd (GDL) had announced an amalgamation scheme between GDL and its subsidiaries Gateway Rail Freight and Gateway East India in September 2020. Now, both NSE and BSE have conveyed their “No-objection” on March 12, 2021 enabling the Company to go ahead with filing of the draft scheme with the National Company Law Tribunal (NCLT). The Company, Gateway Rail Freight and Gateway East India have filed the Joint Company Application in relation to the Scheme with NCLT on March 14, 2021 to begin the next step of the process.
Prem Kishan Dass Gupta, Chairman and Managing Director at Gateway Distriparks commented, “This brings us closer to completing our amalgamation process. This amalgamation will result in creating enhanced value for our shareholders due to greater operational synergies and efficiencies, and we will be able to offer our customers a wider range of locations and services in a single platform.”
The merged entity will have 4 rail-linked inland container depots for EXIM business, a domestic rail terminal in Navi Mumbai, 6 container freight stations spread across the country, and a combined fleet strength of 31 train sets and over 500 road trailers.
In addition, the combined cash flows will enable the merged entity to accelerate debt reduction while at the same time allowing it to continue upon its expansion plans to build a wider network of rail terminals to further expand along the Western Dedicated Freight Corridor.
