Adani Ports Completes Acquisition Of 10.4% Stake In Gangavaram Port
Adani Ports and Special Economic Zones Ltd. has completed acquisition of 10.4% stake in Gangavaram Port Ltd. from the government of Andhra Pradesh, with its board approving the merger between both the firms.
The port operator said in a statement the stake purchase was conducted at Rs 645 crore, adding both the firms approved the amalgamation at a swap ratio of 159:1,000 shares. The transaction was concluded at an equity valuation of Rs 6,200 crore.
The merger, which has an appointed date of April 1, 2021, and is subject to approval by the National Company Law Tribunal, is expected to conclude by March 31, 2022.
In April, Adani Ports purchased 31.5% stake in Gangavaram Port from Windy Lakeside Investment Ltd., a Warburg Pincus affiliate, and agreed to acquire controlling stake of 58.1% in it, held by DVS Raju and family.
Located in northern Andhra Pradesh next to Vizag port, GPL is the state’s second-largest non-major port, with annual capacity of 64 million metric tonnes that was established under concession from the state’s government till 2059.
“This acquisition significantly expands APSEZ’s access to several new markets,” Adani Ports said in the statement, adding that Gangavaram Port handles a mix of dry and bulk commodities including coal, iron ore, fertiliser, limestone, bauxite, sugar, alumina and steel.
“The network of ports that we continue to build allows us to create an integrated mesh of logistics capabilities to deliver an unmatched set of services to our customers” Karan Adani, chief executive and whole-time director of APSEZ, was quoted as saying in the statement.