Adani to buy Kattupalli Port for Rs 1,950 crore

Adani will buy the port of Kattupalli for Rs 1,950 crore

Adani Ports and Special Economic Zone (APSEZ) announced Thursday to have signed an agreement to purchase shares to acquire 97% stake in Marine Infrastructure Developer (MIPDL) for a business value of Rs 1,950 crore, paving the way for the formal takeover of Kattupalli Port near Chennai from L & T Shipbuilding.

The company said that it is now waiting to close the deal, announced two years ago, within a week, having obtained all the necessary approvals. Pending the necessary approvals, APSEZ, through its subsidiary Adani Kattupalli Port (AKPPL), had entered into an agreement to resume port operations

announcing the completion of the transaction, APSEZ declared to have signed a settlement agreement. Stock purchase with Larsen and Toubro, developer of marine infrastructure, L & T Shipbuilding and AKPPL, to acquire 97% stake in Marine Infrastructure Developer, which manages the port of Kattupalli.

Karan Adani, CEO of APSEZ, said: "We thank the Government of Tamil Nadu, Trade for giving approvals in record time.Adani Ports pledges to make the port of Katupalli the 39, one of the largest ports in southern India.We will start our construction to diversify the cargo of the port and will add 40 million tons of new capacity over the next three years.We are confident that With our superior infrastructure and efficient freight management, we will be able to reduce the logistics costs of industries in the region and be one of the engines of growth. "APSEZ signed an agreement in principle for the acquisition of Kattupalli Port L & T Shipbuilding (L & TSB), a subsidiary of Larsen and Toubro, in November 2015.

He stated that the Government of Tamil Nadu had agreed to the transaction proposed in February 2016, since TIDCO, a public entity, held a minority stake. Subsequently, other relevant approvals from the Ministry of Environment and Forests, the Tamil Nadu Industrial Development Corporation, the Tamil Nadu Maritime Council and the SEZ Authorities were also obtained.

APSEZ will pay 388 crore to L & T and its units, while settling the liabilities of another Rs 1,562 crore. The MIPDL, incorporated in 2016 to operate the port of Kattupalli, achieved a turnover of Rs 99 crore for FY17 and no revenue for FY18.

APSEZ announced that it would further develop the container terminal and provide terminal, marine and container services. "The acquisition will allow the company to develop container terminal operations in order to increase its market share and provide container services, bulk terminal operation and maritime services" said APSEZ. The port is one of the most modern in India, emerging as the new gateway to Chennai for EXIM trade in the Chennai / Bangalore region.

Among the many benefits of Kattupalli Harbor, 30 km north of Chennai with connectivity to the northern hinterland. Tamil Nadu, Chennai, Bengaluru region and south of Andhra Pradesh.