Adani Ports & Special Economic Zone (APSEZ), India’s largest port developer and part of the Adani Group, has reportedly entered into exclusive talks to buy the country’s deepest port – Gangavaram Port – for USD 2.1 billion, according to local media.
Adani initially planned to finance the deal through a USD 2.5 billion bond issuance, which is now on hold due to the financial crisis in Greece. Adani has now turned to banks to secure funding for the acquisition.
The 21-meter-deep Gangavaram Port was inaugurated in 2009, and is operated by DVS Raju Group, which holds a 58% stake in the port.
A global private equity firm Warburg Pincus has a 31% share, and the government of Andhra Pradesh holds about 11% of the port’s shares. The DVS Rajou Group-led consortium was awarded a 30-year concession to construct and operate the port in August 2003.
The Gangavaram port handled 20.74 million tonnes of cargo in FY 2014.
World Maritime News Staff