Gateway Distriparks Limited (GDL) has entered into a Share Purchase Agreement with Team Global Logistics to sell its second CFS in Chennai, held by its wholly owned subsidiary – Chandra CFS & Terminal Operators Private Limited (Chandra CFS). The ticket size of the deal is expected to be slightly lower than Rs 50 crore and the transaction will be closed before December end.
Chandra CFS is a container freight station strategically located between Chennai & Ennore ports. For FY 2018-19, Chandra handled around 12,000 TEUs last year. The company posted a total income of Rs 9 crores, EBITDA of Rs 1.33 crores and Loss Before Tax of Rs 0.62 crores. GDL will continue to operate its first CFS in Chennai where it handled over 87,000 TEUs last year.
Prem Kishan Gupta, Chairman and Managing Director of Gateway, commented “Gateway Distriparks is looking to consolidate its position in Chennai by working out of a single facility, and the net proceeds from this sale will go entirely towards reduction of debt.”
GDL Group operates 7 Container Freight Stations in Nhava Sheva, Chennai, Vizag, Kochi and Krishnapatnam and provides rail transport service through it 4 Inland Container Depots (ICD) at Gurgaon, Faridabad, Ludhiana, Ahmedabad and Domestic Container Terminal (DCT) at Navi Mumbai.