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Business News/ Companies / News/  Adani Port to divest of 49% stake in Adani Ennore Container Terminal for 247 crore
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Adani Port to divest of 49% stake in Adani Ennore Container Terminal for ₹247 crore

After the completion of the transaction, APSEZ would hold a 51 percent stake in AECTPL. The proposed transaction will be completed within three to four months

File image of an Adani-owned Port in India (PTI)Premium
File image of an Adani-owned Port in India (PTI)

Adani Ports is set to divest 49 percent of its stake in Adani Ennore Container Terminal (AECTPL) for a total consideration of 247 crore, the company informed the exchanges.

“The company has entered into a Share Purchase Agreement on December 14, 2023, with Mundi Limited, an indirect subsidiary of Terminal Investment Limited and associate of Mediterranean Shipping Company for divestment of a 49 percent stake in Adani Ennore Container Terminal Private Limited," Adani Ports and Special Economic Zone (APSEZ) said in a regulatory filing. 

“This second joint venture builds on the success of the 2013 joint venture with TiL for Adani International Container Terminal (AICTPL), which operates CT3 Container Terminal at Mundra Port, the largest private commercial port in India," as per the release.

Also Read: Adani Ports plans to raise 10 billion through bond sale, first since 2021

The total enterprise value of AECTPL is 1,211 crore. The transaction is subject to regulatory approvals. After the completion of the transaction, APSEZ would hold a 51 percent stake in AECTPL. The proposed transaction will be completed within three to four months, it added.

Strategic Partnership

Karan Adani, CEO and Whole Time Director of APSEZ said the company's partnership with TiL and MSC, is "built on mutual trust and transparency", adding that they aim to replicate the AICTPL terminal’s success at the Ennore Container Terminal and service the trade needs of the South Indian market".

“This strengthening of our association with the world’s largest shipping company reflects APSEZ’s robust vision of accelerating sectoral growth through a transparent business approach," he added.

Also Read: Adani Ports board approves issuance of NCDs worth 5,250 crore

Ammar Kanaan, CEO of TiL added that the association will enable them to further improve the company’s presence in one of the world’s fastest-growing economies "and strengthen our offering to customers in the Indian subcontinent".

Located on India’s east coast, AECTPL has a quay length of 400 meters and an annual handling capacity of 0.8 million TEUs, as per Adani Ports. The terminal handled 0.55 million TEUs in FY23 and 0.45 million TEUs in the initial eight months of the current fiscal year. The concession period of the terminal is until 2044, and its annual capacity can be extended to 1.4 million TEUs, it added.

Also Read: Gautam Adani’s copper plant to boost India’s metal production by 80%, may also increase strain on global ore supply

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Published: 15 Dec 2023, 09:01 AM IST
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