India’s largest port developer and part of Adani Group APSEZ entered a pact for acquiring Marine Infrastructure Developer Private Limited (MIDPL) for Rs 1,950 crore.
Of the Rs 1,950 crore, Adani Ports and Special Economic Zone Limited (APSEZ) will be paying Rs 1,562 crore towards settlement of dues of MIDPL.
“The company has signed share purchase agreement on June 27, 2018, between Larsen and Toubro, Marine Infrastructure Developer Private Limited, L&T Shipbuilding Limited and Adani Kattupalli Port Private Limited to acquire 97 per cent stake of MIDPL,” the company said in a regulatory filing to the BSE.
MIDPL is engaged construction, maintenance, development and operation of Kattupalli Port. The company is likely to complete the acquisition in a week, APSEZ said.
About the cost of the MIDPL acquisition, the company said it will be “Rs 1,950 crore enterprise value of which Rs 388 crore is the consideration for the acquisition of shares and the balance Rs 1,562 crore is towards settlement of liabilities of MIDPL.”
APSEZ said the acquisition will enable the company to develop container terminal operation to increase market share and provide container, bulk terminal operation and marine services. About governmental or regulatory approvals, it said the Tamil Nadu government vide an order dated February 29, 2016, had granted approval for the transaction.
MIDPL was incorporated on January 22, 2016, and had Rs 98.64 crore revenue in 2016-17, the filing said.