The agreement would include a share swap arrangement requiring the issuance of around 47.7 million APSEZ shares to the former promoters of Gangavaram Port. The deal finalised at Rs 6,200 crore
Adani Ports and Special Economic Zone Ltd (APSEZ) received approval from the National Company Law Tribunals (NCLT) at Ahmedabad and Hyderabad for the acquisition of the balance 58.1 per cent stake in Gangavaram Port Limited (GPL) on 10 October. Gangavaram Port is an all-weather deep-water multipurpose port.
Adani Ports and Special Economic Zones is the flagship transportation business arm of the Adani group. Also, APSEZ is the largest private ports and logistics company of India.
Early this year, APSEZ had acquired 31.5 per cent stake in the company from Warburg Pincus and 10.4 per cent from Andhra Pradesh government.
The deal, would be carried further via composite scheme of arrangement which will make Gangavaram Port a 100 percent subsidiary of APSEZ.
The agreement would include a share swap arrangement requiring the issuance of around 47.7 million APSEZ shares to the former promoters of Gangavaram Port. The deal finalised at Rs 6,200 crore.
APSEZ’s CEO and Whole-time Director, Karan Adani said, “Acquisition of GPL is a key milestone in consolidating our position as India’s largest transport utility and in achieving East Coast and West Coast parity. Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes.”
Gangavaram Port, has no debt and stood with a cash balance of Rs 1,293 crore (as of March 2022). It is third biggest non-major port (excluding those controlled by Central government) in India. As per the reports, the “port has capacity of handling fully-laden super cape size vessels with nine berths and free hold land of 1,800 acres.”
Currently, Gangavaram port holds capacity of handling 64 million tonnes (mt) of cargo. Its concession period runs through 2059. The port handles commodities like coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel.
APSEZ in a statement said, ” from APSEZ’s pan-India footprint, logistics integration, customer centric philosophy, operational efficiencies, and strong balance sheet to deliver a combination of high growth will benefit GPL. This all will be achieved by enhancing market share, adding more cargo types and improved margins and returns.”