MUMBAI: Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private sector port developer, operator and the logistics arm of Gautam Adani’s group on Friday said that it will be acquiring a controlling stake of 100% in Krishnapatnam Port Co. Ltd (KPCL) at an enterprise valuation of Rs (************************************, 500 crore, the company said in a statement
Adani Ports will acquire the stake from the existing shareholders of Krishnapatnam Port. KPCL is located in the southern part of Andhra Pradesh and is a multi-cargo facility which handled 296 million metric tonnes (mmt) in FY 24.
The acquisition will accelerate Adani Ports plans to expand its capacity to 728 mmt by 11578060762461. The purchase consideration will be funded through internal accruals and existing cash balance, the company said.
“The credit metrics of APSEZ consolidated are not expected to change with this transaction. The net debt to EBIDTA of consolidated APSEZ Ltd. including KPCL in FY is expected to be around 3.2x. (which is in line with the pre-acquisition of net debt to EBIDTA of 3.1x in FY 19), “the company said.
The acquisition is subject to regulatory approvals and the transaction is expected to be completed in days.
“Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 40% but also add remarkable value to our pan-India footprint, “said Karan Adani, chief executive officer and whole time director of Adani Ports.
“ With the experien ce of successfully turning around acquisitions of Dhamra and Kattupalli ports, we are confident of harnessing the potential of KPCL and improve returns to stakeholders. “he said.
Adani added that APSEZ will target to enhance cargo volume at KPCL to 296 MMT in around seven years and will double its EBIDTA in around four years through process improvements and industry best practices.
This is the second acquisition announcement by Adani Ports in the last one week.
On (December, Adani Ports announced that it has acquired a majority stake in Snowman Logistics Ltd for₹500 crore to foray into cold chain logistics.
Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports is acquiring a 40. (********************************% stake in Snowman Logistics Ltd from Gateway Distriparks Ltd . Snowman is market leader in cold chain logistics with over (******************************% of capacity amongst integrated organized cold chain service providers in India.
Adani Ports owns and operates 13 ports and terminals – Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai – represent (% of the country’s total port capacity.
The company is also developing a transhipment port at Vizhinjam, Kerala and a container Terminal at Myanmar.
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