Adani Ports in talks to buy Shapoorji Pallonji Group’s Gopalpur Ports in Odisha, shares jump 3 percent

Adani Ports and Special Economic Zone (SEZ) has reportedly engaged in discussions with Shapoorji Pallonji Group to acquire Gopalpur Ports in Odisha for an estimated equity value of Rs 1,100-1,200 crore.

The potential acquisition is in line with Adani Ports’ strategic approach of establishing a network of facilities across both eastern and western coastal regions, known as the “string-of-pearls” strategy, reported The Economic Times.

Following the report, shares of Adani Ports gained during the trading session. At around 12:50 pm, Adani Ports shares were trading 3.01 per cent higher at Rs 1,048.60 apiece.

As per sources quoted in the report, SP Ports Maintenance currently holds a 56 per cent stake in Gopalpur Ports, with the remaining ownership belonging to Orissa Stevedores (OSL).

The ongoing due diligence process is a crucial step in this potential transaction, and if successful, Gopalpur Ports would mark Adani Ports and SEZ’s sixth acquisition of a multi-purpose facility on the eastern coast.

While discussions are underway, it remains uncertain whether a definitive deal will materialise.

The report indicates that JSW Infrastructure has also expressed interest in acquiring the Gopalpur port from the Mistry family, offering an enterprise valuation of Rs 3,000 crore. However, differences in valuation expectations have been noted, with the Mistry family reportedly dissatisfied with the proposed offer.

The port’s enterprise value is estimated at around Rs 5,000 crore, with the Mistry family’s equity value standing at Rs 2,000 crore, as disclosed in a company presentation. Gopalpur Ports, operational since 2015, holds long-term bank facilities amounting to Rs 1,432 crore as of February, according to credit rating firm Care Edge.

The port’s strategic location between Paradip Port and Vizag Port, along with its connection to the Golden Quadrilateral through NH-516, adds to its significance in the region.

Published By:

Koustav Das

Published On:

Dec 7, 2023

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