Major acquisition on Indian east coast
The Adani Ports and Special Economic Zone (“Apsez”), an Indian port developer and operator and part of the Adani Group, will be acquiring a controlling stake of 75% from the existing shareholders of Krishnapatnam Port (KPCL). The KPCL is located in the southern part of Andhra Pradesh on the eastern side of the Indian subcontinent, with the second largest coastline of the Indian federal states.
It is a multi-cargo facility that handled 54 million t of cargo in the financial year of 2019. This acquisition will bring Apsez’ managed total throughput towards 400 million t by 2025. The acquisition value of KPCL is approximately IRN 13,500 cr. (USD 1.87 billion).
The purchase will be funded through internal accruals and existing cash balance. The acquisition is subject to regulatory approvals. The transaction is expected to be completed by May 2020. (mw)