Placeholder canvas

Adani Ports to acquire stake of 75% in Krishnapatnam Port

Date:

Adani Ports and Special Economic Zone Limited (APSEZ), the logistics arm of the Adani group will be acquiring a controlling stake of 75% from the existing shareholders of Krishnapatnam Port Company Ltd (KPCL).

“KPCL is located in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India, and is a multi-cargo facility that handled 54 MMT in FY19. This acquisition will accelerate APSEZ’s stride towards 400 MMT by 2025,” a release by Adani said.

APSEZ is India’s largest port developer, operator and logistics arm of the Adani Group.

The acquisition value of KPCL is approximately Rs 13,500 crore while the purchase consideration will be funded through internal accruals and existing cash balance. The credit metrics of APSEZ consolidated are not expected to change with this transaction.

“The net debt to EBIDTA of consolidated APSEZ Ltd. including KPCL in FY 21 is expected to be around 3.2x. (which is in line with the pre-acquisition of net debt to EBIDTA of 3.1x in FY19). The acquisition is subject to regulatory approvals. The transaction is expected to be completed in 120 days,” read the release.

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said that APSEZ will target to enhance cargo volume at KPCL to 100 MMT in around 7 years and will double its EBIDTA in around 4 years through its process improvements and industry best practices.

“KPCL is a crown jewel to join APSEZ’s string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo,” he said.

“Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 27% but also add remarkable value to our pan-India footprint. With the experience of successfully turning around acquisitions of Dhamra and Kattupalli ports, we are confident of harnessing the potential of KPCL and improve returns to stakeholders,” Adani said.

(With ANI Inputs)

Click here for Latest News updates and viral videos on our AI-powered smart news

For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Biden’s ‘Election Potshot’ At Key India And Japan Will Not Derail Ties

The President said " This election is about freedom, America and democracy. That’s why I badly need you. You know, one of the reasons why our economy is growing is because of you and many others. Why? Because we welcome immigrants"

IPL 2024: SRH Edge Past RR On Final Ball To Clinch 1-run Victory

SRH defied the odds and got across the finishing line from the point when defeat stood out as the most likely result for the hosts

Jan 6 Violence: Donald Trump Confirms He Wanted To Go To The Capitol

Speaking to his supporters in Wisconsin, Trump attacked senators looking into the Capitol disturbances on January 6 and went on to rant extensively about his legal matters

Mysterious Laser Transmission From 140 Million Miles In Deep Space Strikes Earth

In October 2023 NASA launched a space mission, sending a spacecraft towards an asteroid which was named 'Psyche 16' which is believed to be primarily composed of a metal, a rarity in our solar system