Adani's Port Stock Gains, To Sell 49% Stake In Ennore Container Terminal For Rs 247 Crore

Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Friday that it will be divesting a 49% stake in Adani Ennore Container Terminal to Terminal Investment Ltd (TIL) for a transaction value of Rs 247 crore. This marks Adani Ports' second collaboration with TIL, following a successful joint venture with Adani International Container Terminal Pvt Ltd (AICTPL).

The container terminal operating and investing arm of Mediterranean Shipping Company, Terminal Investment Ltd, will acquire the stake through its indirect subsidiary, Mundi Ltd. The transaction, which is subject to regulatory approvals, is anticipated to be finalized within three to four months, further deepening the ties between the two companies.

The total enterprise value of Adani Ennore has been estimated at Rs 1,211 crore. Post the completion of the deal, Adani Ports will retain a 51% stake in Adani Ennore, underlining the company's commitment to expanding its footprint in the rapidly growing container terminal market in the southern region of India.

Karan Adani, CEO and Whole Time Director of Adani Ports and SEZ, expressed optimism about the venture, stating, "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."

Adani Ports' earlier joint venture with AICTPL operates the CT3 Container Terminal at Mundra Port, which happens to be the largest private commercial port in the country. This collaboration has set the stage for Adani Ports to replicate its success at the Ennore Container Terminal.

Adani International Container Terminal, a subsidiary of APSEZ, demonstrated healthy performance in the fiscal year 2023 by processing 0.55 million TEUs (Twenty-Foot Equivalent Units). In the first eight months of the current fiscal year, it handled 0.45 million TEUs. The terminal's concession period extends until 2044, and there's potential for its annual capacity to be expanded to 1.4 million TEUs, showcasing a positive trajectory for future growth.

Market response to this strategic move has been favourable, with Adani Ports shares trading 0.21% higher at Rs 1,077 apiece at 11 am on December 15. The transaction not only signifies a significant financial move for both Adani Ports and Terminal Investment Ltd but also reinforces the collaboration between the landscape of India's port and container terminal sector.

As the industry continues to evolve, this partnership is poised to contribute to the efficient handling of trade and cargo, further establishing Adani Ports as a key player in the maritime domain.