Nellore: Gautam Adani, who is known for investing in various businesses, is likely to buy a stake in Krishnapatnam Port. According to the reports, Adani eyeing to enlarge ports operation by acquiring a 65 to 70 per cent stake in Krishnapatnam Port Company Ltd.
Adani Ports and Special Economic Zone (APSEZ) is expected to shell out more than Rs 5,500 crores to buy the stake. In return, it will allow entry to the country’s largest waterfront area (for a port) of 12.5 km and a transit storage area of 6,800 acres.
In the past APSEZ bought Dhamra port in 2014 and Kattupalli port in 2016. This is the third acquisition by APSEZ.
APSEZ has set a target of doubling cargo handling to 400 million tonnes by 2025. Following the acquisition, the company will move towards its goal. The port currently can load 40-45 million tonnes of cargo from 10 berths, including a 1.2 million TEU-capacity container terminal, which gripped more than 500,000 TEUs in FY19.
A person related to the matter on the condition of anonymity said to one leading news website, “The port is burdened with huge debt, so the transaction consideration will mainly go towards settling the bank dues.”
Recently, Adani Enterprises Ltd announced to invest Rs 10,000 crore in the airport business.
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