Adani Group In Talks With Krishnapatnam Port To Acquire Majority Stake
Gautam Adani-led Adani group is in discussions with the promoters of Krishnapatnam Port Company Ltd. for acquiring majority stake. If the deal materialises, it would be about Rs 5,500 crore, sources close to the port promoters said on Tuesday.
The all-weather port with 365 days of operations is located at Krishnapatnam in Nellore District of Andhra Pradesh, north of Chennai. "Both the parties have signed term sheet. Adanis are showing interest to acquire nearly 72 percent of the stake in the KPCL.
Due diligence is being carried out. The deal size once materialised, could be around Rs 5,500 crore," the sources told PTI.
KPCL was formed by the Hyderabad-based Navayuga Group by winning the mandate from the then Andhra Pradesh government to develop the existing minor port into modern, deep water and high Productivity port, on BuildOperate-Share-Transfer concession basis for 50 years.
The port, which began operations in 2008, has a huge backup area of 6,800 acres. It has handled over 41 million tonnes of dry cargo and 500,000 TEUs during the last fiscal.
After the acquisition, Managing Director Chinta Sasidhar will hold the remaining 28 percent stake and continue to remain in his current position, the sources added. Navayuga Group, along with family and friends, owns 91 percent of in KPCL and over nine per cent is held by the London-based equity firm 3i Group.
Adani Ports and Special Economic Zone in a clarification submitted to the bourses on Tuesday on the issue of acquiring stake in KPCL, said At this point in time, there is no event/information that requires disclosure (to the regulator).