June 29, 2018 1:00:58 am
Adani Ports and Special Economic Zone (APSEZ) on Thursday said it has signed a share purchase agreement to acquire 97 per cent stake in Marine Infrastructure Developer (MIPDL) for an enterprise value of Rs 1,950 crore, paving the way to officially take over the ownership of Kattupalli Port near Chennai from L&T Shipbuilding.
The company said it now expects to close the transaction, announced two years ago, in one week’s time, having obtained all the necessary approvals. While awaiting the necessary approvals, APSEZ through its subsidiary Adani Kattupalli Port (AKPPL) had entered into an arrangement to take over the operations of the port. Announcing the completion of the transaction, APSEZ said it has inked a share purchase agreement with Larsen and Toubro, Marine Infrastructure Developer, L&T Shipbuilding and AKPPL, to acquire 97 per cent stake of Marine Infrastructure Developer, which runs the Kattupalli Port.
APSEZ CEO Karan Adani said, “We are thankful to the Tamil Nadu government and ministry of commerce for giving approvals in record time … We are going to start our construction to diversify the cargo of the port and will be adding 40 MMT of new capacity in the next three years …” APSEZ had signed an in-principle agreement for acquisition of Kattupalli Port from L&T Shipbuilding, a subsidiary of Larsen and Toubro, in November 2015.
As per the all-cash deal, APSEZ will pay Rs 388 crore to L&T and its units, while settling liabilities of another Rs 1,562 crore. MIPDL, incorporated in 2016 to operate Kattupalli Port, had a revenue of Rs 99 crore for FY17 and no revenue for FY18.
APSEZ said it will develop the container terminal further and provide bulk terminal, marine and container services at the location. FE
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