The AP Moller Group of Germany is picking up a 13.4 per cent in Gujarat Pipavav Port (GPPL) through the acquisition of 2,00,00,000 equity shares. The port is the country's first private sector port located on the eastern coastline of Gujarat.
According to sources, the equity shares are being bought out by Maersk India Ltd, a domestic wholly owned subsidiary of the AP Moller group and Maersk Holding Ltd, Switzerland, another Moller group company. However, the premium on each share of Rs 10 each could not be determined.
The acquisition of shares in the company is being done in two phases. In the first, the two companies will buy out 10 million equity shares at present held by Sea King Infrastructure Ltd -- a group company of the Ahmedabad-based Gandhi family -- in GPPL. Thereafter, there will be a fresh issue of 10 million shares on a preferential basis.
Sources said that after the proposed transaction, the shareholding of AP Moller group (through its subsidiaries) in GPPL will be 13.4 per cent of its post-investment revised equity share capital. PSA Corporation Ltd, Singapore, already holds 25 per cent of the holding and Commonwealth Development Corporation (CDC), around 6 per cent.
The scheme of share transfer as well as fresh issuance of equity has also been approved by the board of GPPL. Besides, the AP Moller group does not have similar joint ventures with any other domestic firm, and hence the proposals are likely to receive all mandatory regulatory clearances shortly.
Officials said Maersk India had received government approval in September 1999 to carry on, in collaboration with OCB Ltd -- a wholly owned subsidiary of the AP Moller group, which initially picked up an 80 per cent stake -- the business of container freight services in India and also to make Maersk the group's investment vehicle for further downstream investment in port infrastructure, ports, port terminals and so on.
The approved foreign equity was increased from 80 per cent to 100 per cent by way of acquisition of 12,00,000 equity shares of Rs 10 -- each constituting 20 per cent shareholding from Janpath Investments and Holdings Ltd (JIHL) by OCB Ltd in the paid-up capital of Maersk India.
