New Delhi (Anish Yande): Adani Ports and Special Economic Zone Ltd has completed the finalization of the remaining 25% stake in Krishnapatnam Port. The company has signed an agreement with Vishwa Samudra Holdings for completing the acquisition of the entire 100% stake in Krishnapatnam Port.
Adani Ports acquires Krishnapatnam Port for Rs 2,800 crore:
The company finalized the acquisition for a consideration of Rs 2,800 crore.
Adani Ports holds a 75% stake in Krishnapatnam Port. The acquisition is pending approval from the Competition Commission of India. The acquisition is expected to receive approval and be completed within 3 months.
Following the acquisition, the Krishnapatnam Port would become a wholly-owned subsidiary of Adani Ports. Krishnapatnam Port is a multi-cargo facility and deep water, all-weather port. The port transports and holds containers and handles the transport of bulk cargo which includes liquid cargo.
The port is located in the Nellore district of Andhra Pradesh. Krishnapatnam Port has a capacity of 64 MMTPA on 6,800 acres of land and a master plan capacity of 300 MMTPA.
According to the filing by Adani Ports, the port is projected to have volumes amounting to 38 MMT and an Ebitda of Rs 1,325 crore in FY21. The revenue is expected to grow to Rs 1,840 crore in the fiscal year.
Adani Ports to expand the total cargo capacity to 500 MMT:
Adani Ports had previously acquired a 58.1% stake in Gangavaram Port Ltd. The multi-port operator signed an agreement with DVS Raju and family for a consideration of Rs 3,604 crore. Adani Ports is also looking to acquire Warburg Pincus' 31.5% stake in Gangavaram Port.
Karan Adani, the Chief Executive Officer and Director at Adani Ports have stated that the acquisition of Krishnapatnam Port would help Adani Ports achieve a ' broader strategy of cargo parity between west and east coasts of India.' Adani Ports aims to expand the total cargo capacity to 500 MMT by 2025. Karan Adani stated that Krishnapatnam Port would be handling double the traffic by 2025 and deliver high growth.
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