Adani to acquire Kattupalli port from L&T

The Tamil Nadu government has reportedly given approval to Adani Ports and Special Economic Zone Limited (APSEZL) to acquire Kattupalli port from L&T Shipbuilding Limited (LTSB), a unit of Larsen &Toubro (L&T). The in-principle agreement for the strategic acquisition of the port was signed between APSEZL and L&T in November 2015. However, the companies did not disclose the financial details of the transaction. L&T holds 97 per cent equity stake in LTSB, while the Tamil Nadu Industrial Development Corporation, an undertaking of the Tamil Nadu government, holds the remaining 3 per cent. While approving the demerger, the state government has kept the original terms of the agreement that it had signed with L&T unchanged. L&T was contractually mandated to pay the state either a revenue share or royalty per standard container handled at the terminal, whichever was higher. APSEZL will now have to follow the same terms.

GET ACCESS TO OUR ARTICLES

Enter your email address