India’s Adani Ports and Special Economic Zone (APSEZ) has entered into a definitive agreement to purchase a 95% stake in Gopalpur Port Limited.
The stake will be bought from two companies – a 56% stake was bought from the SP Group while 39% was bought from Orissa Stevedores. The acquisition is made at an enterprise value of INR 3,080 crore ($369.6m). In addition to the enterprise value, there is a contingent consideration of around $32.4m estimated to be payable after 5.5 years, subject to certain conditions.
Gopalpur port is located on the east coast of India and can handle 20m mtpa. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.
As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. Furthermore, the concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 2 sq km of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.
“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint,” said Karan Adani, managing director of APSEZ.
In the fiscal year 2024, GPL is estimated to handle about 11.3m metric tonnes of cargo, a year-on-year growth of 52% and a 39% revenue growth year-on-year.
