Adani Ports had announced the approval of a proposal to acquire a 10.4 per cent stake of Gangavaram Port (GPL) by the company from the Government of Andhra Pradesh. The consideration for the proposed acquisition of a 10.4 per cent equity stake of GPL is Rs 644.78 crore, and the transaction is expected to be completed within one month.

“The company has received a letter/order from Andhra Pradesh Maritime Board dated 23rd August 2021 received on 24th August 2021 intimating the approval of the proposal of acquisition of 10.4 per cent stake of GPL by the company from Government of Andhra Pradesh,” Adani Ports said in an exchange filing late Tuesday.

The acquisition is in line with the company’s strategy of East Coast to West Coast parity and will provide access to growth from new hinterland markets as it has coverage in resource-rich and industrial belts in Eastern, Central & Southern India said.

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The acquisition is subject to approvals under applicable laws, including the Competition Commission of India (CCI). The consideration is Rs 644.78 crore, subject to closing adjustment if any.

Gangavaram Port, incorporated in September 2001, is engaged in handling various types of dry bulk and breakbulk cargo. It is a multi-cargo facility and took 32.81 MMT of cargo in FY21. It has a capacity of 64 MMT. The operational revenue for the financial year 2020-21 was Rs 1,057 crore.

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