+
Adani's Gangavaram Port acquisition faces bottlenecks
Equipment

Adani's Gangavaram Port acquisition faces bottlenecks

Promoters of Vishakhapatnam's Gangavaram Port are renegotiating the sale of the port to Adani Ports and Special Economic Zone (APSEZ), fearing Adani Port's ties with the Myanmar military.

The DVS Raju family, which owns a 58.1% stake in Gangavaram, wants a cash consideration for half their stake instead of an all-share deal finalised earlier, sources told the media.

On March 23, Adani Ports had announced that it had struck a deal to acquire the Raju family's stake in Gangavaram for Rs 3,604 crore. Earlier that month, APSEZ had purchased a 31.5% stake from Warburg Pincus for Rs 1,954 crore. Both these deals valued Gangavaram at Rs 120 per share. According to sources cited earlier, the deal with the Raju family was a share swap – six shares of Gangavaram were to be exchanged for one share of Adani Ports. The closing price of Adani Ports shares on March 22 was Rs 721.6.

The Raju family is concerned that Adani Ports' valuation will be hit after S&P Dow Jones Indices removed the stock from its sustainability index and some Scandinavian investors sold their holdings, citing ESG (environment, social and corporate governance concerns), the banker said.

On April 13, S&P Dow Jones Indices said it would remove Adani Ports from its sustainability index following reports of its business ties with Myanmar's military that has been accused of human rights violations after a coup.

When a company is removed from an index that is widely followed, it stands to lose value as funds tracking the benchmark will also cut it out. Following the S&P announcement, Adani Ports shares fell around 4% over the next four days but have since recouped losses. At Wednesday's close, APSEZ was trading at Rs 738.10 a share, up nearly 2.3% from the March 22 close.

Image Source


Also read: Adani to acquire 58% stake in Gangavaram port

Promoters of Vishakhapatnam's Gangavaram Port are renegotiating the sale of the port to Adani Ports and Special Economic Zone (APSEZ), fearing Adani Port's ties with the Myanmar military. The DVS Raju family, which owns a 58.1% stake in Gangavaram, wants a cash consideration for half their stake instead of an all-share deal finalised earlier, sources told the media. On March 23, Adani Ports had announced that it had struck a deal to acquire the Raju family's stake in Gangavaram for Rs 3,604 crore. Earlier that month, APSEZ had purchased a 31.5% stake from Warburg Pincus for Rs 1,954 crore. Both these deals valued Gangavaram at Rs 120 per share. According to sources cited earlier, the deal with the Raju family was a share swap – six shares of Gangavaram were to be exchanged for one share of Adani Ports. The closing price of Adani Ports shares on March 22 was Rs 721.6. The Raju family is concerned that Adani Ports' valuation will be hit after S&P Dow Jones Indices removed the stock from its sustainability index and some Scandinavian investors sold their holdings, citing ESG (environment, social and corporate governance concerns), the banker said. On April 13, S&P Dow Jones Indices said it would remove Adani Ports from its sustainability index following reports of its business ties with Myanmar's military that has been accused of human rights violations after a coup. When a company is removed from an index that is widely followed, it stands to lose value as funds tracking the benchmark will also cut it out. Following the S&P announcement, Adani Ports shares fell around 4% over the next four days but have since recouped losses. At Wednesday's close, APSEZ was trading at Rs 738.10 a share, up nearly 2.3% from the March 22 close. Image SourceAlso read: Adani to acquire 58% stake in Gangavaram port

Next Story
Infrastructure Transport

Syama Prasad Mookerjee Port Partners to Redevelop Nimtala Ghat

Kolkata: Syama Prasad Mookerjee Port, Kolkata (SMPK), signed a Memorandum of Understanding (MoU) on Tuesday with PS Group Realty Private Limited to redevelop and beautify Nimtala Ghat as part of PS Group’s Corporate Social Responsibility (CSR) initiative.The agreement was formalised at SMPK’s Head Office at 15, Strand Road, in the presence of SMPK chairman Rathendra Raman, deputy chairman Samrat Rahi, PS Group directors Saurav Dugar, Gaurav Dugar, Arun Sancheti, and senior SMPK officials.Under the MoU, PS Group will undertake the full redevelopment and permitted construction of Nimtala Imm..

Next Story
Infrastructure Urban

CSIR-NCL and Covestro Collaborate to Upcycle Polyurethane Waste

In a move towards sustainable plastic waste management, Pune-based CSIR-National Chemical Laboratory (CSIR-NCL) signed a Memorandum of Understanding (MoU) with Covestro (India) Private Limited on Wednesday to develop innovative upcycling technologies for polyurethane waste.Polyurethane is notoriously difficult to recycle, with current methods often proving inefficient, costly, and environmentally harmful. This collaboration aims to address existing challenges, including high energy usage and deterioration of material quality during recycling.Ashish Lele, director of CSIR-NCL, stated, “This p..

Next Story
Infrastructure Urban

Torrent Pharma Seeks CCI Approval for Rs 195 Billion JB Chemicals Deal

Ahmedabad-based Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) to acquire a majority stake in J B Chemicals and Pharmaceuticals in a Rs 195 billion deal.Upon completion, Torrent Pharmaceuticals will become India’s second most valuable pharmaceutical company.The move follows Torrent’s June announcement to acquire a majority stake in J B Chemicals for Rs 195 billion.“The proposed combination pertains to the acquisition of shareholding by Torrent Pharmaceuticals Ltd in J B Chemicals & Pharmaceuticals Ltd, followed by the merger of the target ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?