Adani Ports to acquire remaining 25% stakes of Krishnapatnam Port
Adani Ports to acquire remaining 25% stakes of Krishnapatnam Port
Adani Ports and Special Economic Zone (SEZ) Limited on Monday, April 5, 2021, announced that it has signed an agreement with Vishwa Samudra Holdings Pvt Ltd to acquire a 25 per cent stake of Adani Krishnapatnam Port Limited. The agreement was signed on April 1, 2021, for a consideration of Rs 2,800 crore.
The company, at present, holds a 75 per cent stake in the port, and post-acquisition of this 25 per cent stake, Krishnapatnam Port will become a wholly-owned subsidiary of the company. The company said that the investment is in line with the company's strategy to increase its footprint in Andhra Pradesh.
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.
Krishnapatnam Port was incorporated on March 15, 1996, 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 that has 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.
Turnover of the last three years of Krishnapatnam Port:
1) Revenue for FY 2017 – 18: Rs 1969 crore.
2) Revenue for FY 2018 – 19: Rs 2394 crore.
3) Revenue for FY 2019 – 20: Rs 1975 crore.
Shares of Adani Ports were trading 0.43 per cent lower at Rs 733.10 on NSE at 2.54 pm in line with the Nifty which was down 1.47 per cent.