SP Group to sell port to Adani co for Rs 3.3,000 crore

Mar25,2024



Mumbai: Shapoorji Pallonji Group is preparing to sell its 56% stake. Gopalpur Port In Odisha To Adani Ports For an enterprise value of Rs 3,000-3,300 crore, of which the equity consideration is Rs 1,300 crore.
In December 2023, the construction-to-real estate group led by Shapoor Mistry sold its 50% stake in Maharashtra's Dharamtar Port to JSW Infrastructure. After the latest deal, SP will be left with an under-construction port at Chhara. , Gujarat. The share sale in Gopalpur is part of SP's strategy to sell non-core assets to reduce debt of Rs 20,000 crore. Over the past few years, the group has sold assets worth Rs 11,000 crore to strengthen its balance sheet. The next step is to sell a portion of its interests in engineering major Afcons Infrastructure through an IPO. Afcons, which SP acquired from ICICI Bank and is valued at more than $2 billion (Rs 16,685 crore) today, has been preparing itself for an IPO in recent months. The last time a group company traded in the primary market was Sterling & Wilson Renewable Energy in August 2019.
SP, which has built the Sultan of Oman's palace and the Atal Tunnel, had acquired the Gopalpur port in 2017 from metals trader Sara International and entrepreneur Mahminand Mishra of Orissa Stevedores. Later this changed the performance of the port. Currently, the port handles 12-15 million metric tonnes of cargo annually. The remaining 44% stake in the port is held by Orissa Stevedores. According to credit rater Care Edge, the port had bank facilities worth Rs 1,432 crore as of February 14, 2023.
The deal will help Adani The ports will expand their game, which handled 109 million metric tonnes of cargo in Q3FY24. During the same period, it completed the purchase of Karaikal port in Puducherry and sold 49% stake in Ennore terminal to Switzerland's Mediterranean Shipping Company. Adani Ports, the world's largest private port network with presence in India, Sri Lanka and Israel, is now looking to enter Africa, a source said. SP and Adani Ports did not respond to requests for comment.
The Gopalpur port deal comes just after SP, which holds 18.4% stake in Tata Sons, sold its stake in the data center manufacturing business to a group of domestic investors. Most of its sold assets have been bought by major names like Advent (bought by Eureka Forbes) Actis (thermal power project in Bangladesh), National Investment and Infrastructure Fund (Jammu Udhampur Highway) and Reliance Industries (Sterling & Wilson Renewable Energy) . ,



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