Posted on December 10, 2023
Adani Ports and SEZ is reportedly in talks with Shapoorji Pallonji Group to acquire its Gopalpur Ports in Odisha for up to Rs 1,100-1,200 crore in equity value. SP Ports Maintenance owns 56 per cent in Gopalpur Ports, while the rest is owned by Orissa Stevedores (OSL). This acquisition is part of the company’s string-of-pearls strategy that involves owning facilities in both eastern and western water margins.
According to a report in the Economic Times, the due diligence process is currently underway. If this follows through, Gopalpur Ports will be Adani Ports and SEZ’s sixth acquisition of a multi-purpose facility in the eastern coast.
However, it is unclear if any deal will emerge and materialise from these talks, the report stated, adding that JSW Infrastructure was in talks with the Mistrys for the same asset for Rs 3,000 crore enterprise valuation. The Mistry family was understood to not be happy with the offering.
The enterprise value of the port is around Rs 5,000 crore and the Mistry’s equity value was at Rs 2,000 crore, SP Group had told investors in a company presentation, as reviewed by the financial daily. The port has long-term bank facilities of Rs 1,432 crore as on February, as per credit rating firm Care Edge.
The SP Group had earlier sold a majority 50 per cent in the 5 million tonnes per annum (MTPA) PNP Maritime Services (PNP Port) that operates jetties at Shahbaj, in Maharashtra’s Raigad. JSW Infrastructure paid Rs 270 crore in cash for the facility that has an enterprise value of Rs 700 crore. The proceeds will go toward repaying NCD holders of a Rs 14,300-crore, rupee-denominated zero coupon bond.
Gopalpur Ports has been operational since 2015 and is located between the busy Paradip Port and Vizag Port. It is also connected to the Golden Quadrilateral through NH-516.
