Adani Ports To Take Majority Stake in Krishnapatnam Port
Illustration; Image Courtesy: Pixabay under CC0 Creative Commons license
Adani Ports and Special Economic Zone Limited (APSEZ), India’s largest port developer, operator and part of the Adani Group, has decided to acquire a controlling stake in Krishnapatnam Port Company Ltd (KPCL).
As informed, the 75 percent stake will be bought from the existing shareholders of KPCL for INR 135.7 billion (USD 1.9 billion).
Located in the southern part of Andhra Pradesh coastline, Krishnapatnam Port is the second-largest private sector port in India after Mundra. In FY 2019, the multi-cargo facility handled 54 MMT.
“APSEZ will target to enhance cargo volume at KPCL to 100 MMT in around 7 years and will double its EBIDTA in around 4 years,” Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ, said.
This acquisition is also expected to accelerate APSEZ’s stride towards 400 MMT by 2025.
“(T)his acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo. Given the … infrastructure and the … hinterland catered by KPCL, this acquisition will not just increase our market share to 27% but also add remarkable value to our pan-India footprint,” Adani further said.
The transaction, subject to regulatory approvals, is planned to be completed in 120 days, according to the port operator.
The purchase follows APSEZ’s acquisitions of other two ports in the country, Dhamra and Kattupalli ports, in 2014 and 2018, respectively.
