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APSEZ announces acquisition plans

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Capital Market
Last Updated : Jan 04 2020 | 12:31 PM IST

Adani Ports and Special Economic Zone (APSEZ) said that the company intends to acquire stake of Krishnapatnam Port Company (KPCL) from the existing shareholders.

Adani Ports and Special Economic Zone (APSEZ) has informed that the company intends to acquire 75% stake of Krishnapatnam Port Company (KPCL) from the existing shareholders. The investment is in line with the company's strategy to increase its footprint in Andhra Pradesh. The announcement was made after market hours on Friday, 3 January 2020.

KPCL is located in the southern part of Andhra Pradesh, the state with the second largest coastline of in India, and is a multi-cargo facility which handled 54 MMT in FY2019. The company is engaged in the business of handling containers, coal, break bulk and other bulk cargo including liquid cargo.

Acquisition value of KPCL is approximately Rs 13,500 crore. The purchase consideration will be funded through internal accruals and existing cash balance. The transaction is expected to be completed in 120 days.

Shares of APSEZ fell 0.20% to settle at Rs 382.70 yesterday, 3 January 2020.

KPCL is a multi-cargo facility and handled 54 MMT of cargo in FY 19. It has a capacity of 64 MMT. Its revenue for financial year 2018-19 was Rs 2394 crore.

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APSEZ, a part of globally diversified Adani Group, is the largest port developer and operator in India.

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First Published: Jan 04 2020 | 8:19 AM IST

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