Adani Ports and Special Economic Zone Ltd (APSEZ) on Monday said it has acquired the remaining 25 per cent stake in Krishnapatnam Port Ltd from Vishwasamudra Holdings, making the port a wholly-owned subsidiary of the company.
Post acquisition of the 25 per cent stake for a cash consideration of Rs 2,800 crore, APSEZ's stake in the port will increase to 100 per cent from 75 per cent, the Adani Group company said in a release.
The acquisition is subject to approvals under applicable laws, including approval of the Competition Commission of India, and the transaction is expected to be completed within 3 months.
The company said the investment is in line with its strategy to increase its footprint in Andhra Pradesh.
Last month, APSEZ had said it would acquire 58.1 per cent stake in Gangavaram Port, located in the northern part of Andhra Pradesh, from DVS Raju and family for Rs 3,604 crore, taking its total stake in the port to 89.6 per cent.
Krishnapatnam Port is located on the east coast of India in Nellore district of Andhra Pradesh, close to the border between Andhra Pradesh and Tamil Nadu. It is an all-weather, deep water port with multicargo facility and a current capacity of 64 MMTPA. "With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MMTPA and a 50-year concession," it said.
The port is expected to have volume of 38 MMT, revenue of Rs 1,840 crore and EBITDA of Rs 1,325 crore in fiscal year 2020-21. Its revenue stood at Rs 1,975 crore in 2019-20, and Rs 2,394 crore in 2018-19.
"The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ's stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed," APSEZ CEO Karan Adani said.
He expressed confidence about doubling the port's throughput and tripling its EBITDA by 2025, and said APSEZ will transform Krishnapatnam into a manufacturing and industrial hub.
On Monday, shares of APSEZ closed 0.80 per cent higher at Rs 742.15 on the BSE.