Indian private ports and logistics company Adani Ports and Special Economic Zone (APSEZ) has taken over Gangavaram Port (GPL) following the acquisition of the Andhra Pradesh government’s stake of 10.4% for Rs 646 crore ($87.4 million).
Boards of both companies have approved the merger at a swap of 159 shares in APSEZ for 1,000 shares in GLP and is expected to be completed by 31 March 2022.
“The network of ports that we continue to build allows us to create an integrated mesh of logistics capabilities to deliver an unmatched set of services to our customers,” said Karan Adani, CEO of APSEZ.
“Gangavaram is a major part of this mesh in one of India’s fastest growing states. We are excited about the growth prospects of GPL, which is core to our east coast expansion strategy. GPL is advantageously located to allow us unprecedented access to the largely untapped hinterland market.”
This follows on from Adani Ports’ takeover of the Adani Krishnapatnam Port after acquiring the remaining 25% for $376,782. Reported in April 2021, Adani Ports said it is confident that it would be able to double throughput and triple EBITDA at the port by 2025.