Nellore: Adani Ports and Special Economic Zone (APSEZ) Ltd has signed an agreement with Vishwa Samudra Holdings Pvt Ltd, to acquire 25 percent stake in Nellore-based Krishnapatnam Port Ltd at Rs 2,800 crore, the company said in an exchange filing on Monday.
The company already holds a 75 percent stake in the port. Post-acquisition of 25 percent stake, Krishnapatnam Port will become a wholly-owned subsidiary of APSEZ. The company said that the investment is in line with the company's strategy to increase its footprint in Andhra Pradesh.
Adani Ports said that the investment is in line with i's strategy to increase its footprint in Andhra Pradesh. "APSEZ's 100% ownership of Krishnapatnam Port will quicken our march to 500 MMT by 2025. With Krishnapatnam set to double its traffic, its gateway location, and connectivity will drive manufacturing and industrial growth not only in Andhra Pradesh but also in entire South India," said Karan Adani CEO- Adani Ports and SEZ Ltd.
Krishnapatnam Port is engaged in the business of handling containers, coal, breakbulk, and other bulk cargo including liquid cargo. It is an all-weather, deep water port having a multi-cargo facility with a current capacity of 64 MMTPA. With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MMTPA and a 50-year concession.
The acquisition is subject to approvals under applicable laws, including approval of the Competition Commission of India. The transaction is expected to be completed within 3 months, Adani Ports said.
In October 2020, Adani Ports had acquired a 75 percent stake in Krishnapatnam Port Co Ltd for an enterprise value of Rs 12,000 crore. The new acquisition is also in line with the company's ambitious plan to handle throughput volumes of 400 million tonnes by 2024-2025.
Earlier in March, Adani Ports and Special Economic Zone (APSEZ) Ltd acquired the 58.1 percent stake in Gangavaram Port Limited (GPL) owned by DVS Raju and family.
The acquisition is valued at Rs. 3,604 crore and subject to regulatory approvals.
APSEZ had announced the acquisition of Warburg Pincus's 31.5% stake in GPL on March 3, 2021, and together with this acquisition, APSEZ would have an 89.6% stake in GPL.
GPL is located in the northern part (Vizag city) of Andhra Pradesh next to Visakhapatnam Port Trust. GPL is the second-largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the Government of Andhra Pradesh (GoAP) that extends till 2059.
It is all-weather, deep water, multipurpose port capable of handling fully laden super-cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has free-hold land of 1,800 acres. With a master plan capacity of 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.
GPL handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, southern, and central India.
In 2019-2020, GPL had a cargo volume of 34.5 MMT, a revenue of Rs. 1,082 crore, EBITDA of Rs. 634 crore (59% margin) and PAT of Rs. 516 crore GPL is debt-free with a cash balance of over Rs. 500 crore.