Adani finalises deal to acquire Gopalpur Port from SP Group, Orissa Stevedores Ltd
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL)
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Visakhapatnam: Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL). The acquisition is made at an enterprise value of Rs.3,080 crore, and the transaction is subject to statutory approvals and fulfilment of other conditions precedents, the company said in a release on Tuesday.
Karan Adani, Managing Director of APSEZ, said “the acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint."
APSEZ owns Gangavaram and Krishnapatnam ports in Andhra Pradesh. Gopalpur is located close Srikakulam district of AP.
Gopalpur port on the east coast of India has the capacity to handle 20 MMTPA. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.
As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina and others. The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.
The port is well connected with its hinterland through the national Highway NH16 and a dedicated railway line connects the port with the Chennai-Howrah main line.
In addition to the enterprise value stated above there is a contingent consideration of Rs 270 crore estimated to be payable after 5.5 years, subject to fulfilment of certain conditions as agreed with the sellers.
