Gateway Distriparks along with two subsidiaries file amalgamation scheme before NCLT

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Mumbai, Mar 15 (PTI) Integrated inter-modal logistics service provider Gateway Distriparks on Monday said the company along with its subsidiaries -- Rail Freight Ltd and Gateway East India Pvt Ltd -- have filed an application for amalgamation before the National Company Law Tribunal (NCLT).

The application was filed on March 14 after securing approval from both the stock exchanges -- BSE and NSE --, Gateway Distriparks Ltd (GDL) said in a statement.

The amalgamation scheme was announced last September. Both BSE and NSE gave their 'no-objection' for the scheme on March 12.

'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,' GDL Chairman and Managing Director Prem Kishan Gupta said.

The merged entity will have four rail-linked inland container depots for the exports-imports business, a domestic rail terminal in Navi Mumbai, six container freight stations and a combined fleet strength of 31 train sets and over 500 road trailers, as per the statement.

The combined cash flows will enable the merged entity to accelerate debt reduction while at the same time allow it to continue with expansion plans to build a wider network of rail terminals to further expand along the Western Dedicated Freight Corridor, it added.

GDL operates four container freight stations at Navi Mumbai, Chennai, and Krishnapatnam. Two container freight stations are being operated at Kochi and Visakhapatnam through its subsidiaries, Gateway Distriparks (Kerala) Ltd and Gateway East India Pvt Ltd, respectively. PTI IAS RAM