INSUBCONTINENT EXCLUSIVE:
MUMBAI: Adani Ports and Special Economic Zone on Friday announced its decision to acquire a controlling stake in Krishnapatnam Port Company
Limited (KPCL) in what would be the largest acquisition in the port sector in India.
The Gautam Adani-led company will buy a 75% stake in
KPCL at an enterprise value of Rs 13,572 crore after prolonged talks to obtain the all-weather port in Andhra Pradesh
The all-cash deal will be funded through internal accruals and existing cash balance, the company said in a release.
Located at
Krishnapatnam in Nellore district of Andhra Pradesh, north of Chennai, the port was developed in 2008 by CVR Group, which continues to own a
London-based private equity firm 3i Group owns a minority stake.
The port adds about 64 million metric tonnes (MMT) of annual cargo-handling
subsidiary Adani Logistics announcing the acquisition of Snowman Logistics, a cold chain logistics company for Rs 296 crore.
The Adani
Group, which has become one of the largest port developer and operators in the country, has been on an expansion spree with its eyes set on
Ports and Special Economic Zone
depreciation and amortisation) in four years
In FY19, KPCL handled about 54 MMT of cargo, with an Ebitda of Rs 1,350 crore.
The transaction is expected to be completed within 120 days,
subject to legal approvals, including that from the competition watchdog.