The Adani Ports and Special Economic Zone (APSEZ) has signed a deal to acquire the 58.1% stake owned by DVS Raju and family in Gangavaram Port Limited (GPL), the holding company of the Gangavaram Port in Visakhapatnam (Vizag), Andhra Pradesh for INR 36.04 billion ($500 million).

In this regard, the Adani Group company, subject to regulatory approvals, will acquire nearly 30 crore shares held by DVS Raju and family in the Gangavaram Port at INR 120 per share.

Earlier this month, the Adani Group company signed a deal to acquire the 31.5% stake owned by Windy Lakeside Investment, an affiliate of Warburg Pincus, for about $270 million.

The two deals will give Adani Ports and Special Economic Zone a stake of 89.6% in the Gangavaram Port. The remaining 10.4% in the all-weather, deep water, multi-purpose port is held by the Andhra Pradesh government.

Through its Krishnapatnam and Gangavaram ports in Andhra Pradesh, Adani Ports and Special Economic Zone expects to provide improved solutions to its customers

Karan Adani – Adani Ports and Special Economic Zone CEO and Whole Time Director said: “The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands. Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers.

“In this context, GPL is a tremendous addition to our portfolio.

“The associated hinterland we will now be able to tap into is one of the fastest growing in the eastern region and with the logistic synergies APSEZ brings to the table, GPL has a potential to become a 250 MMT port. This will undoubtedly help accelerate the industrialization of AP.

“The Raju family has built a great port and we will continue to expand the world class asset that has been initiated by them.”

  Adani Group, Adani Ports and Special Economic Zone, Andhra Pradesh, APSEZ, DVS Raju, Gangavaram Port Limited, India, Karan Adani, Visakhapatnam