Harbor & Marine Terminal Management major Adani Ports and Special Economic Zone Ltd. (APSEZ) is reportedly acquiring the residual 25 percent stake in Adani Krishnapatnam Port Ltd., (Krishnapatnam Port) for Rs 2,800 crore. The acquisition is subject to approvals under applicable laws, including approval of the Competition Commission of India.
In a press release, the Company said, “ It has signed an agreement on April 1, 2021, with Vishwa Samudra Holdings Pvt Ltd, to acquire 25 percent stake of Adani Krishnapatnam Port Limited for a cash consideration of Rs 2,800 crore,".
With this acquisition, APSEZ will increase its stake from 75 percent to 100 percent in Krishnapatnam Port, the country's second-largest private-sector port. The acquisition will be completed by buying 25 percent from Vishwa Samudra Holdings.
The port is expected to have volumes of 38 MMT, revenues of Rs. 1,840 cr and EBITDA of Rs. 1,325 Cr in FY21. Since the acquisition, Krishnapatnam Port has focused on business process re-engineering which has resulted in EBITDA margins improving from 57 percent in FY20 to 72 percent in FY21.
After this development, on Monday, shares of Adani ports and special economic zone is trading in NSE at Rs. 713.30 as compared to the previous close of Rs. 736.25 at around 11:30 hrs. In comparison, the NSE Nifty clocked at 14,489.55, down by 403 points.
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