India’s largest private ports and logistics company, Adani Ports and Special Economic Zone (APSEZ), has completed the buy-out of Gangavaram Port with the acquisition of the Andhra Pradesh government’s stake of 10.4% for Rs 645 crore ($87.4m).
The boards of APSEZ and Gangavaram Port have also approved the merger, resulting in a swap ratio of 159 shares in APSEZ for 1,000 shares in GPL for 58.1% stake held by DVS Raju and family. The merger is expected to complete by March 31, 2022.
Earlier, in April 2021, APSEZ had acquired 31.5% from Windy Lakeside Investment, a Warburg Pincus affiliate, and had signed an agreement for a controlling stake of 58.1% held by DVS Raju and Family. After the merger, DVS Raju and family will have around a 2.2% stake in APSEZ.
Karan Adani, CEO of APSEZ, stated: “The network of ports that we continue to build allows us to create an integrated mesh of logistics capabilities to deliver an unmatched set of services to our customers. Gangavaram is a major part of this mesh in one of India’s fastest growing states. We are excited about the growth prospects of GPL, which is core to our east coast expansion strategy. GPL is advantageously located to allow us unprecedented access to the largely untapped hinterland market.”
Gangavaram Port (GVL) is a 64m tons capacity non-major port established under a concession from the government of Andhra Pradesh that extends until 2059 and is the gateway port for a hinterland spread over eight states across India. It handles a diverse mix of dry and bulk commodities, including coal, iron ore, fertilizer, limestone, bauxite, sugar, and steel.
In April, Adani Ports took full control of Krishnapatnam Port on the east coast of India, paying $38.1m for the 25% stake held by Vishwa Samudra Holdings and in February, completed the acquisition of a 100% stake in Dighi Port near Mumbai.