Bid & Tender
APSEZ in Talks to Acquire Gangavaram Port for $2.1 Billion

Date : Jul 16, 2015

Adani Ports & Special Economic Zone (APSEZ ) has entered into exclusive talks to acquire Gangavaram Port near Vishakhapatnam in Andhra Pradesh for $2.1 billion, a deal which could make the company a dominant player on the country's eastern seaboard to capture the freight traffic in Bay of Bengal, people directly familiar with the matter said.

This could be the biggest acquisition for Adani Group, spearheaded by 53-year-old Gautam Adani, pipping its $2 billion Abbot Point Coal Terminal buy in Australia four years ago.

Adani's acquisition offer, through a fully leveraged route, comes more than a year after its $1-billion Dhamra port acquisition on the east coast in Odisha.The $10-billion conglomerate with primary interests in ports, power and natural resources was initially planning to clinch the deal after its planned $2.5 billion dollar bond issuance, which now has been postponed due to the Greece crisis.

Adani is expected to move ahead with deal making in the coming weeks after securing financing support from a clutch of banks, the sources cited earlier said.