Adani Ports and Special Economic Zone Ltd. will acquire a 95% stake in Gopalpur Port Ltd. in Odisha for Rs 1,349 crore, to strengthen the country's largest private port operator's eastern presence.
The Adani Group company entered into a definitive agreement to purchase 56% stake of the Shapoorji Pallonji Group and 39% of Orissa Stevedores in Gopalpur Port, according to an exchange filing on Tuesday.
The enterprise value of the acquisition is Rs 3,080 crore, with a contingent consideration of Rs 270 crore estimated to be payable after 5.5 years.
Post acquisition, Orissa Stevedores will continue as a joint venture with a 5% stake.
Importance Of Gopalpur Port
The Gopalpur port can handle 20 million metric tonne per annum. The Government of Odisha awarded a 30 year concession to GPL in 2006, with the provision of two 10-year extensions each.
The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron and steel, alumina and others, it said.
Gopalpur is located between two major ports in Paradip and Visakhapatnam, and this move will help the port operator strengthen its east coast presence, it said.
"The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers," Karan Adani, managing director of Adani Ports, said in the statement. "Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint."
Currently, Adani Ports has 14 ports under its belt with a capacity of about 607 MMT, with the east coast contributing about 252 MMT.
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