Terminal Investment Limited (TiL) buys 49% of shares in Adani Ennore Container Terminal Pvt Ltd (AECTPL) from Adani Ports. The transaction will be official after getting regulatory approvals.
TiL is a partner or associate of Mediterranean Shipping Company or MSC. It has bought the stake for an amount of 247 crore rupees from Adani Ports and Special Economic Zone Ltd or APSEZ. This is the second time that the two companies are collaborating on a joint venture. It is a strategic partnership to run the container terminal – the AECTPL.
The Ambitious Deal of Adani Ports
Terminal Investment Limited will buy 49% shares of Adani Ports through its subsidiary, Mundi Ltd. It is to be noted that TiL has full ownership of this subsidiary.
The Mediterranean Shipping Company is a Swiss-based company and TiL is one of its units. The TiL runs the business of container terminals.
The APSEZ will retain about 51% of ownership and shares in Adani Ennore Container Terminal Pvt Ltd (AECTPL) once the transaction is complete. It will take about three to four months to finish the formalities of the deal.
Adani Ennore Container Terminal Pvt Ltd controls and runs the CT3 Container Terminal. This terminal is in the Mundra Port. The port is considered India’s largest and most important private and commercial port.
This is the Second Deal of Adani Ports with TiL
The 49% sale of the stake is Adani Ports’ second deal of partnership with the TiL. The first one was a joint venture that both companies had in 2013. The deal was for the Adani International Container Terminal Pvt Ltd (AICTPL).
The AECTPL is situated in Chennai in South India along the Eastern coastline. The port is 400 metres long. It has a capacity of 0.8 Mn TEUs per year. The value of the port is Rs 1,211 crore or Rs 12.11 billion. This amount includes the debt that the company has on itself.
Karan Adani Reveals the Vision and Policy of Adani Ports
CEO of Adani Ports, Karan Adani has said that their company has a positive relationship of trust with TiL and MSC. And they follow a policy of transparency with each other. It is this mutual trust that has led to the deal for the sale of a 49% stake to TiL. Karan further added that the deal will help in making the Ennore Container Terminal as successful as the AICTPL. The current agreement will also help in making their partnership with the largest shipping company stronger, he said. Karan stated that Adani Ports has a policy of transparency in business and a vision of boosting growth.