Adani Ports now owns 100% of Krishnapatnam Port Limited
Adani Ports and Special Economic Zone Ltd (APSEZ) has acquired the remaining 25% stake in Krishnapatnam Port Ltd in Andhra Pradesh at a cost of Rs 2,800 crore from Vishwasamudra Holdings, making the port a wholly-owned subsidiary of the company.
Adani Group told the media that post-acquisition of the 25% stake for a cash consideration of Rs 2,800 crore, APSEZ's stake in Krishnapatnam port would increase to 100% from 75%.
Adani Group said with a waterfront of 20 km and 6,800 acres of land, Krishnapatnam port has a master plan capacity of 300 MMTPA and a 50-year concession.
The acquisition is subject to approvals under applicable laws, including approval of the Competition Commission of India (CCI), and the transaction is expected to be completed within three months. The company said the investment is in line with its strategy to increase its footprint in Andhra Pradesh.
Last month, APSEZ had said it would acquire a 58.1% stake in Gangavaram port, located in the northern part of Andhra Pradesh, from DVS Raju and family for Rs 3,604 crore, taking its total stake in the port to 89.6%.
The port is expected to have a volume of 38 mmt, a revenue of Rs 1,840 crore, and an EBITDA of Rs 1,325 crore in the fiscal year 2020-21. Its revenue stood at Rs 1,975 crore in 2019-20, and Rs 2,394 crore in 2018-19.
Krishnapatnam port is located on the east coast of India in the Nellore district of Andhra Pradesh, close to the Tamil Nadu border. It is an all-weather, deep water port with a multi-cargo facility and a current capacity of 64 MMTPA.
Also read: APSEZ acquires 75 per cent stake in KPCL