Adani Group-owned Adani Ports and Special Economic Zone (APSEZ) today announced that it has executed a definitive agreement with L&T Infrastructure Development Projects Ltd and Tata Steel Ltd to acquire 100 per cent stake in Dhamra Port Company Ltd (DPCL) for an enterprise value of Rs 5,500 crore.
A deep draft, all weather multi-user port located in Odisha, Dhamra Port had commenced operations in May 2011 and handled a total cargo of 14.3 million tonnes in FY14.
The acquisition would fast-track expansions at the port, which is likely to exceed 100 mt of cargo capacity by 2020. This would allow Adani Ports to fulfill its stated vision of becoming a 200 mt ports business well before 2020.
“The Dhamra port acquisition now gives us an opportunity to replicate the development and phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on our pan-India strategy” said Gautam Adani, Chairman of the Adani Group.
As per the agreement, the transaction is subject to customary conditions precedent including lenders/third party approvals. Amarchand & Mangaldas & Suresh A. Shroff & Co. were the legal advisors to APSEZ on this transaction.
Following the acquisition, the second phase of development will be initiated within 90 days and is likely to be completed in 30 months, the company informed in a statement on Friday.
The port has two fully mechanised existing berths, 63 km of a private rail line connecting the Bhadrak station to the main trunk line, and has already received environmental clearance for the development of 12 additional berths.
Adani Ports shares ended up 1.95 per cent at Rs 224.65 on the BSE. It hit a high of Rs 235.40 in intra-day trade today.