Adani to sell 49% stake in Ennore container terminal to MSC arm
18 Dec 2023
.jpg "Adani to sell 49% stake in Ennore container terminal to MSC arm")
Adani Ports and Special Economic Zone Ltd (APSEZ) on Friday announced a strategic partnership with Terminal Investment Limited (TiL), the container terminal operating and investing arm of Mediterranean Shipping Company (MSC), for the operation of Adani Ennore Container Terminal Pvt Ltd (AECTPL).
Under the partnership, Terminal Investment Ltd, through its fully owned subsidiary Mundi Ltd, will acquire a 49 per cent shareholding in AECTPL.
This is Adani Group’s second partnership with the MSC arm after the signing of a joint venture with TIL for the CT3 container terminal at the Mundra Port in 2016. Adani International Container Terminal Pvt Ltd (AICTPL) is the operator of the Mundra Port and Special Economic Zone (MPSEZ).
“APSEZ enjoys a strong partnership with TiL and MSC, built on mutual trust and transparency, as reflected in our growing alliance. With this second joint venture, we are now further deepening this strategic partnership in one of the fastest-growing container terminal markets in the south. We aim to replicate the AICTPL terminal’s success at the Ennore Container Terminal and service the trade needs of the South Indian market,” said Karan Adani, CEO and whole-time director of APSEZ.
“We are highly pleased to strengthen our partnership with APSEZ, India’s largest private sector port operator. This association will enable us to further improve TIL’s presence in one of the world’s fastest-growing economies and strengthen our offering to customers in the Indian subcontinent,” said Ammar Kanaan, CEO, Terminal Investment Ltd.
After the completion of the transaction, APSEZ would hold 51 per cent stake in AECTPL. The total enterprise value of AECTPL is Rs1,211 crore, it stated.
AECTPL has a quay length of 400 meters and an annual handling capacity of 8 lakh TEUs, which can be extended to 1.4 million TEUs. The terminal handled 5.5 lakh TEUs in FY23 and 4.5 lakh TEUs in the first eight months of the current financial year. The concession period of the terminal is until 2044.
