Adani Ports Acquires Dhamra Port
Ahmedabad, May 16, 2014: Adani Ports and Special Economic Zone (APSEZ) today announced that they have executed a definitive agreement with L&T Infrastructure Development Projects Limited and Tata Steel Limited to acquire 100% stake in the Dhamra Port Company Limited (DPCL) at an enterprise value of Rs 5500 crores.
The Dhamra port is a deep draft, all weather multi-user port located on the East Coast of India in the state of Odisha. The port commenced operations in May 2011 and handled a total cargo of 14.3 million tons in FY14. The port has two fully mechanized existing berths, 63 kilometers of a private rail line connecting the Bhadrak station to the main trunk line and has already received environmental clearance for the development of 12 additional berths.
“The Dhamra port acquisition now gives us an opportunity to replicate the development and phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on our pan India strategy” said Gautam Adani, Chairman of the Adani Group. “Nation building for us is ensuring we open up coastal entry and exit points that accelerate industrial development over vast hinterlands. The Dhamra port precisely helps us execute in this direction”.
Following the acquisition, the 2nd phase of development will be initiated within 90 days and completion targeted in 30 months. This continued expansion will allow the Dhamra port exceed 100 million tons of cargo capacity by the year 2020 and therefore allow Adani Ports to fulfill its stated vision of becoming a 200 million metric tons ports business well before the year 2020.
The combination of the naturally protected all weather port, its deep draft with the ability to berth cape size vessels, access to the massive potential in its hinterland, and proximity to the richest mineral wealth in the country is unique. Coupled with the proven experience of Adani ports in the rapid development and execution of port infrastructure and the depth of its management team should make the Dhamra port the fastest growing port in the nation.
As per the agreement, the transaction is subject to customary conditions precedent including lenders / third party approvals.
Amarchand & Mangaldas & Suresh A. Shroff & Co. were the legal advisors to APSEZ, on this transaction.