Ahmedabad (India) - Adani Ports and Special Economic Zone Limited, 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 million metric tonnes in fiscal year 2019. This acquisition will accelerate the port developer's stride towards 400 metric million tonnes by 2025.
Acquisition value of KPCL is approximately 135 million Rupees, 1,7 million euros. The purchase consideration will be funded through internal accruals and existing cash balance.The acquisition is subject to regulatory approvals. The transaction is expected to be completed in 120 days.
"KPCL is a crown jewel to join our string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards 2025 vision of handling 400 metric million tonnes of cargo," said Karan Adani, the port developer's chief executive officer. "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.”
Adani believes that its company will target to enhance cargo volume at KPCL to 100 metric million tonnes in around 7 years and will double its EBIDTA in around 4 years through its process improvements and industry best practices.