Ascent Capital to invest 200 crore in Karaikal port

Ascent Capital to invest 200 crore in Karaikal port

Chennai: Private equity firm Ascent Capital would invest 200 crore in Karaikal port, a subsidiary of diversified business conglomerate MARG Ltd as part of Karaikkal port expansion plans.

The funds would be used for the Karaikal port phaseIIA expansion which would enhance the port’s capacity to 28 mmtpa which involves an additional capital expenditure of 600 crore, MARG Ltd said in a statement.

Bangalore-based Ascent Capital has entered into an agreement with Karaikal Port to invest 200 crore by way of purchase of equity shares amounting to 150 crore and by way infusion of 50 crore by subscribing to compulsory convertible preference shares (CCPS). The deal value of Karaikal Port is at 1,330 crore on a pre-money basis.

“The investment from Ascent Capital into MARG Karaikal port comes at an opportune time and more importantly is a testimony to the sturdy fundamentals of the port led by a high efficiency quotient and a strategic location that supports an increasing hinterland", MARG Ltd chief managing director (CMD) G. R. K. Reddy said.

Ascent Capital has completed the first tranche of its investment by purchasing 125 crore worth of equity shares of Karaikal port from MARG Limited and by investing an amount of 32 crore by subscribing to CCPS, the statement added.