In order to run Adani Ennore Container Terminal Pvt Ltd, the transport utility company Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Friday that it has formed a second strategic partnership with Terminal Investment Limited (TiL), a division of Mediterranean Shipping Company (MSC).
Notably, TiL is a part of MSC, the biggest container shipping company in the world. For Rs 247 crore, the business plans to purchase a 49% stake in AECTPL from APSEZ through its subsidiary Mundi Ltd.
After a 2013 joint venture with TiL for Adani International Container Terminal Pvt Ltd (AICTPL), which runs the CT3 Container Terminal at Mundra Port, the biggest private commercial port in India, this is the second joint venture between the industry titans.
We are now strengthening our strategic alliance in one of the southern container port markets that is expanding the fastest with our second joint venture. The CEO and Whole Time Director of APSEZ, Karan Adani, stated, “Our goal is to duplicate the AICTPL terminal’s achievements at the Ennore Container Terminal and meet the trade demands of the South Indian market.”
A press release from the Adani flagship stated that AECTPL has a total enterprise value of Rs 1,211 crore.
Regulators must approve the transaction before it can proceed. The business also stated that APSEZ would own a 51% share in AECTPL upon the transaction’s conclusion.
AECTPL claims to have an annual handling capacity of 0.8 million TEUs and a 400-metre-long dock. According to the corporation, the east coast port in India handled 0.55 million TEUs in FY23 and 0.45 million TEUs in the first eight months of the current fiscal year.
According to the Adani Ports division, the terminal’s concession tenure is up to 2044, and it has the potential to expand its yearly capacity to 1.4 million TEUs.
Additionally, In what would be its first local currency sale in two years, Adani Ports and Special Economic Zone plans to offer up to 10 billion rupees ($120 million) in bonds through a private placement.
According to persons acquainted with the proposal, who asked not to be named because they were discussing a private topic, the base size would be 5 billion rupees, with an additional 5 billion option for oversubscription.
After being singled out by US short seller Hindenburg Research in January, Flagship Adani Enterprises Ltd. became the first of Indian billionaire Gautam Adani’s companies to offer local-currency bonds. The group has refuted the claims. In July, it brought in 12.5 billion rupees.
