Adani Ports transfers its 49% stake in the unit to Mediterranean Shipping in exchange for Rs 247 crore

In a statement on Friday, Adani Ports and Special Economic Zone Ltd (APSEZ) announced that it has entered into a second strategic partnership with Terminal Investment Limited (TiL), the MSC arm of Mediterranean Shipping Company, for the operation of Adani Ennore Container Terminal Pvt Ltd (AECTPL).

The company’s partnership with TiL and MSC, as stated by Karan Adani, CEO and Whole Time Director of APSEZ, is based on mutual trust and transparency. They aim to emulate the success of the AICTPL terminal at the Ennore Container Terminal and fulfill the trade needs of the South Indian market.

This strengthens our relationship with the world’s largest shipping company, which shows APSEZ’s determined vision to drive sector growth with transparency of business practices,” he said.

Specifically, TiL is an associate of MSC (the world’s largest container shipping line). In return for Rs, Mundi Ltd, the company’s subsidiary, is set to purchase a 49 per cent stake in AECTPL from APSEZ. The figure is 247 crore.

This is the second collaboration between the giants, following the Adani International Container Terminal Pvt Ltd (AICTPL) joint venture with TiL in 2013, which operates Mundra Port’s CT3 Container Terminal, India’s biggest private commercial port.

Terminal Investment Ltd., Mediterranean Shipping Co.’s container terminal operating and investing arm as a subsidiary of Mundi Ltd. in an exchange filing on Friday, will acquire a stake through its indirect subsidiary, Adani Ports. In three or four months, the deal is expected to be finalized.

The enterprise owned by Adani Ennore has a value of Rs 1,211 crore. With a quay length of 400 metres and an annual handling capacity of 0.8 million twenty-foot equivalent units, the container terminal is situated on India’s east coast. We want to do exactly that.’ Karan Adani, chief executive officer and whole-time director at Adani Ports said: ‘We want the South Indian market needs fulfilled, so we are aiming for success of AICTPL terminal at Ennore Container Terminal. As per Ammar Kanaan, the CEO of Terminal Investment, this agreement will contribute to improving TiL’s standing in ONE of the world’s fastest-growing economies and enhancing our service to customers in the Indian subcontinent.

One of the fastest-growing container terminal markets in the south is now where we are furthering our strategic partnership with this second joint venture. Our goal, as stated by Kara Adani, the CEO and Whole Time Director of APSEZ, is to replicate the success of the Ennore Container Terminal with an AICTPL terminal for South Indian trade.