New Delhi: India's largest port developer and part of Adani Group APSEZ today said it has inked a pact to acquire Marine Infrastructure Developer for Rs 1,950 crore.
Marine Infrastructure Developer Private Limited (MIDPL) is the operator of Kattupalli Port.
Of the Rs 1,950 crore, Adani Ports and Special Economic Zone Limited (APSEZ) will be paying Rs 1,562 crore towards settlement of dues of MIDPL.
"It has executed Share Purchase Agreement between Larsen and Toubro Limited, Marine Infrastructure Developer Private Limited, L&T Shipbuilding Limited and Adani Kattupalli Port Private Limited to acquire 97 per cent shares of Marine Infrastructure Developer Private Limited (MIDPL). MIDPL is the developer and operator of Kattupalli Port," APSEZ said in a statement.
Kattupalli Port is one of the most modern ports in India, emerging as new gateway for EXIM trade in Chennai / Bangalore region and provides a whole new dimension of services with speed and sophistication, the company said.
"We are going to start our construction to diversify the cargo of the port and will be adding 40 million tonne of new capacity in next 3 years. We are confident that with our superior infrastructure and efficient handling of cargo we will be able to reduce logistics cost of industries in the region and be one of the engines of growth," APSEZ CEO Karan Adani.
MIDPL is engaged construction, maintenance, development and operation of Kattupalli Port. The company is likely to complete the acquisition in a week, APSEZ said.
The company in a regulatory filing to the BSE said the acquisition will be "Rs 1,950 crore enterprise value of which Rs 388 crore is the consideration for the acquisition of shares and the balance Rs 1,562 crore is towards settlement of liabilities of MIDPL".
APSEZ said the acquisition will enable the company to develop container terminal operation to increase market share and provide container, bulk terminal operation and marine services.
About governmental or regulatory approvals, it said the Tamil Nadu government vide an order dated February 29, 2016, had granted approval for the transaction.
MIDPL was incorporated on January 22, 2016, and had Rs 98.64 crore revenue in 2016-17, the filing said.
APSEZ said with backup area of 322 acres, Kattupalli port provides ample space for future expansion of port to facilitate trade requirements.
APSEZ plans to transform Kattupalli into a multi commodity port to handle cargoes like containers, automobiles, break bulk, general cargo, liquid cargo and project cargo. Presently the port has capacity to handle 1.2 Million TEUs (twenty-foot equivalent unit) per annum.
APSEZ said amongst the many advantages of Kattupalli port is its unique location - it is located 30 kilometers towards north of Chennai and has connectivity with hinterland of North Tamilnadu, Chennai, Bangalore region and South Andhra Pradesh - locations which are highly industrialised.