The Adani Ports and Special Economic Zone Ltd (APSEZ), an Indian ports and logistics company, has entered into a definitive agreement to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL).

The acquisition is made at an enterprise value of INR 3,080 crore (about USD 369,5 million), and the transaction is subject to statutory approvals and fulfilment of other conditions precedents.

Gopalpur port is located on the east coast of India and has the capacity to handle 20 million metric tons per year, and the Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

 Gopalpur is a deep draft, multi-cargo port which handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina.

The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina and others.

The port is well connected with its hinterland through the national Highway NH16 and a dedicated railway line connects the port with the Chennai-Howrah main line.

In addition to the enterprise value stated above there is a contingent consideration of INR 270 crores (about USD 32,4 million) estimated to be payable after 5.5 years, subject to fulfilment of certain conditions as agreed with the sellers.

APSEZ states that in FY’24 GPL is estimated to handle about 11.3 million metric tons cargo (YoY growth 52%) and earn a revenue of INR 520 crores (about USD 62,4 million – YoY growth 39%) and achieve EBITDA of INR 232 crores (about USD 27,8 million – YoY growth 65%).

Karan Adani, managing director of APSEZ, said: “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers.

“Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”

Source: Adani Ports and Special Economic Zone Ltd.