Bhubaneswar: Port major Adani Group has increased its presence on the east coast by entering into a definitive agreement to acquire 95 per cent stake in Odisha’s Gopalpur Port Limited (GPL) for an equity value of Rs 1,349 crore.
In a regulatory filing, Adani Ports and Special Economic Zone (APSEZ) on Tuesday said that it has entered into an agreement to purchase 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL). The acquisition is being made at an enterprise value of Rs 3,080 crore.
In addition to the enterprise value 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.
The acquisition is expected to drive synergy with the major’s existing ports and strengthen its presence on the east coast. “GPL will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach,” managing director at Adani Ports Karan Adani was quoted as saying.
Gopalpur port, a deep draft, multi-cargo port, has the capacity to handle 20 MMTPA diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The 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 government of Odisha had awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each. The statement said that the concessionaire has full flexibility to design and expand the port as per the market demand.
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.
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