Adani Ports and SEZ Ltd. to acquire controlling stake of 75% in Krishnapatnam Port Company Ltd. (KPCL)

702

Ahmedabad, 3rd January, 2020: Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer, operator and the logistics arm of the Adani Group will be acquiring a controlling stake of 75% from the existing shareholders of KPCL.

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 FY19.

Online Internship with Certification

Important Announcement – EasyShiksha has now started Online Internship Program “Ab India Sikhega Ghar Se


How EasyShiksha Internship/Training Program Works
How EasyShiksha Internship/Training Program Works
Top Courses in Computer Science Engineering

Top Courses in Virtual Reality

Loading...

More Courses With Certification

This acquisition will accelerate APSEZ’s stride towards 400 MMT by 2025. 

Acquisition value of KPCL is approximately Rs.13,500 cr. The purchase consideration will be funded through internal accruals and existing cash balance. 

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 21 is expected to be around 3.2x. (which is in line with the pre-acquisition of net debt to EBIDTA of 3.1x in FY19)


Top Courses in Computer Science Engineering

Top Courses in Software Engineering

Loading...

More Courses With Certification

The acquisition is subject to regulatory approvals. The transaction is expected to be completed in 120 days.

Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “KPCL is a crown jewel to join APSEZ’s string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo. Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 27% but also add remarkable value to our pan-India footprint.

With the experience of successfully turning around acquisitions of Dhamra and Kattupalli ports, we are confident of harnessing the potential of KPCL and improve returns to stakeholders.”


Top Courses in Quality Management System

Top Courses in Quality Management System

Loading...

More Courses With Certification


Top Courses in Computer Science Engineering

Top Courses in Project Management

Loading...

More Courses With Certification

Mr. Adani added that APSEZ will target to enhance cargo volume at KPCL to 100 MMT in around 7 years and will double its EBIDTA in around 4 years through its process improvements and industry best practices. 

About Adani Ports and Special Economic Zone

Adani Ports and Special Economic Zone (APSEZ), a part of globally diversified Adani Group, is the largest port developer and operator in India. In less than two decades, the company has built a formidable presence in port infrastructure and logistics services. APSEZ’s 11 strategically located 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 24% of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland.

Online Courses with Certification

Top Courses in Computer Science Engineering

Top Courses in Personal Development

Loading...

More Courses With Certification

Top Courses in Computer Science Engineering

Top Courses in Networking

Loading...

More Courses With Certification

The company is also developing a transhipment port at Vizhinjam, Kerala and a container Terminal at Myanmar. For more information please visit www.adaniports.com

Empower your team. Lead the industry

Get a subscription to a library of online courses and digital learning tools for your organization with EasyShiksha

Request Now

Frequently Asked Questions

ALSO READ: dsssb tgt recruitment 2020 apply online 3552 pgt tgt pet vacancy

Get Course: best leadership management training course

Download this article as PDF to read offline: