Adani Ports to acquire 75% stake in Krishnapatnam Port for Rs 13,572 cr

[Kool_SRG]

Adani Ports and Special Economic Zone (APSEZ), one of the country’s largest private port operators, on Friday announced acquisition of 75 per cent stake in Andhra Pradesh-based Krishnapatnam Port Company for an enterprise value of Rs 13,572 crore.

The proposed acquisition is the largest by APSEZ so far and would be funded through internal accruals and existing cash balance, the Gautam Adani-led company said in an exchange filing.

“This acquisition would accelerate our stride towards FY25 vision of handling 400 million tonnes (mt) cargo. Given the best-in-class infrastructure and the distinct hinterland catered by Krishnapatnam Port, this acquisition will increase our market share to 27 per cent (from current 22 per cent),” Karan Adani, chief executive officer of APSEZ, was quoted as saying.

Since the acquisition is subject to regulatory approvals, the transaction is expected to be completed in 120 days, said the exchange filing.

The credit metrics of APSEZ consolidated are not expected to change with this transaction and the net debt/Ebitda, including Krishnapatnam Port, in FY21 is seen at around 3.2x, which is in line with the pre-acquisition of net debt/Ebitda of 3.1x in FY19, the company said.

 

March 31, 2019, debt at Krishnapatnam Port stood at Rs 6,000 core. CVR Group-promoted Krishnapatnam Port is a multi-cargo facility, which handled 54 mt in FY19. 

“We expect the port to grow to 100 mt in around seven years and expect the Ebitda to double in around 4 years,” said the company.

With this acquisition, the company has strengthened its position on the east coast of India. Adani Ports is operating Ennore and Kattupalli (Tamil Nadu), Vizag (Andhra Pradesh), and Dhamra (Odisha) ports and terminals on the east coast. Making it clear that its capacity enhancement plans over the next few years would also include inorganic growth route, Adani Ports’ net debt/Ebitda has been on a roller-coaster ride in the past few years, though it is at a comfortable position at present, keeping enough room for more deals. 

Last week, Adani Ports forayed into cold chain logistics via acquisition of 40.25 per cent stake in Snowman Logistics from promoter Gateway Distriparks. It was Adani Ports’ logistics arm Adani Logistics that did the stake buy. After this acquisition, brokerages are of the view that the company would set its eyes on the National Company Law Tribunal- (NCLT-) listed Dighi port, which will give Adani Group the presence in Maharashtra.

“Dighi looks like Adani Ports’ next acquisition as it will give it presence in Maharashtra,” said a Mumbai-based analyst on the condition of anonymity.

 

[Kool_SRG]

[Kool_SRG]

[Hydrockers]

Duggirajapatnam iathe dini growth position enti ?

[bhaigan]

12 minutes ago, Hydrockers said:

Duggirajapatnam iathe dini growth position enti ?

looks like AP will have one more port in ramaya patnam according to AP reorg act

[bhaigan]

9 minutes ago, Kool_SRG said:

Adani Ports and Special Economic Zone (APSEZ), one of the country’s largest private port operators, on Friday announced acquisition of 75 per cent stake in Andhra Pradesh-based Krishnapatnam Port Company for an enterprise value of Rs 13,572 crore.

The proposed acquisition is the largest by APSEZ so far and would be funded through internal accruals and existing cash balance, the Gautam Adani-led company said in an exchange filing.

“This acquisition would accelerate our stride towards FY25 vision of handling 400 million tonnes (mt) cargo. Given the best-in-class infrastructure and the distinct hinterland catered by Krishnapatnam Port, this acquisition will increase our market share to 27 per cent (from current 22 per cent),” Karan Adani, chief executive officer of APSEZ, was quoted as saying.

Since the acquisition is subject to regulatory approvals, the transaction is expected to be completed in 120 days, said the exchange filing.

The credit metrics of APSEZ consolidated are not expected to change with this transaction and the net debt/Ebitda, including Krishnapatnam Port, in FY21 is seen at around 3.2x, which is in line with the pre-acquisition of net debt/Ebitda of 3.1x in FY19, the company said.

 

March 31, 2019, debt at Krishnapatnam Port stood at Rs 6,000 core. CVR Group-promoted Krishnapatnam Port is a multi-cargo facility, which handled 54 mt in FY19. 

“We expect the port to grow to 100 mt in around seven years and expect the Ebitda to double in around 4 years,” said the company.

With this acquisition, the company has strengthened its position on the east coast of India. Adani Ports is operating Ennore and Kattupalli (Tamil Nadu), Vizag (Andhra Pradesh), and Dhamra (Odisha) ports and terminals on the east coast. Making it clear that its capacity enhancement plans over the next few years would also include inorganic growth route, Adani Ports’ net debt/Ebitda has been on a roller-coaster ride in the past few years, though it is at a comfortable position at present, keeping enough room for more deals. 

Last week, Adani Ports forayed into cold chain logistics via acquisition of 40.25 per cent stake in Snowman Logistics from promoter Gateway Distriparks. It was Adani Ports’ logistics arm Adani Logistics that did the stake buy. After this acquisition, brokerages are of the view that the company would set its eyes on the National Company Law Tribunal- (NCLT-) listed Dighi port, which will give Adani Group the presence in Maharashtra.

“Dighi looks like Adani Ports’ next acquisition as it will give it presence in Maharashtra,” said a Mumbai-based analyst on the condition of anonymity.

 

Good move by AP govt.

[bhaigan]

10 minutes ago, Hydrockers said:

Duggirajapatnam iathe dini growth position enti ?

Centre keen on Ramayapatnam port: GVL

YSRCP govt. should speed up allocation of land for the project, says MP

A public sector port at Ramayapatnam is all set to become a reality with the ruling Bharatiya Janata Party at the Centre keen to anchor the port in this coastal village instead of Dugarajapatnam.

The Union Shipping Ministry has made up its mind to give a push to the project at an alternative site in view of security and environment concerns associated with the site in neighbouring Nellore district close to the Satish Dhawan Space Centre and Pulicat lake, a save haven for migratory birds.

[Hydrockers]

Edo rule unte marcharu ga last week 

[bhaigan]

“Union Shipping Minister Mansukh L. Mandaviya is particular that public sector port in Andhra Pradesh should be taken up early. It is high time Chief Minister Y.S. Jagan Mohan Reddy acted fast in identifying the land for the project to spur port-led development in these parts,” BJP Rajya Sabha member G.V.L. Narasimha Rao told mediapersons during his visit to the sleepy village in Prakasam district.

people from prakasam dist. pandaga chesukondi for now you are getting Commercial Port

[Hydrockers]

2 minutes ago, bhaigan said:

“Union Shipping Minister Mansukh L. Mandaviya is particular that public sector port in Andhra Pradesh should be taken up early. It is high time Chief Minister Y.S. Jagan Mohan Reddy acted fast in identifying the land for the project to spur port-led development in these parts,” BJP Rajya Sabha member G.V.L. Narasimha Rao told mediapersons during his visit to the sleepy village in Prakasam district.

people from prakasam dist. pandaga chesukondi for now you are getting Commercial Port

Adi kuda ma amaravati ke kavali antunna pulkas

[Kool_SRG]

18 minutes ago, bhaigan said:

Good move by AP govt.

Private port ki AP govt enti link.. Good move antunnav..

[snoww]

Jagan Anna Ni soosi vellipoyina Adani Malli enduku coming AP ki

[bhaigan]

12 minutes ago, Kool_SRG said:

Private port ki AP govt enti link.. Good move antunnav..

92% owned by CVR group and they are selling it to Adani ports

regulatory approvals should come from AP govt. and Ports Authority of India

I said good move in terms of ports growth and modernization because Adani is pioneer in ports business

vichitram emiti ante both CVR and Adani belong to BJP,  I mean BJP funding batch

[bhaigan]

Just now, snoww said:

Jagan Anna Ni soosi vellipoyina Adani Malli enduku coming AP ki

anni uthi uthi pookarlu le bhayya

[Hydrockers]

7 minutes ago, bhaigan said:

92% owned by CVR group and they are selling it to Adani ports

regulatory approvals should come from AP govt. and Ports Authority of India

I said good move in terms of ports growth and modernization because Adani is pioneer in ports business

vichitram emiti ante both CVR and Adani belong to BJP,  I mean BJP funding batch

Mari navayuga vallaki enta undi