Adani Ports and Special Economic Zone Ltd (APSEZ) has initiated talks to acquire APMT Management’s 43.01% interest in Gujarat Pipavav Port.
Indian port operator APSEZ has reportedly participated in APMT’s bidding process.
It is mulling a controlling stake of 51% or more by way of an open offer, according anonymous people with knowledge of the project, and APMT recruited HSBC Holdings to advise on the deal.
Foreign interests hold a 37.19% stake and Indian interests hold 13.34% in the Pipavav Port.
Prices of shares in the port have reportedly risen as much as 4.39% since news of the talks broke.
The port was India’s first private port when it commenced operations in 1998, part of the Gujarat government policy to build, own, operate and transfer facilities.
APMT is also looking to exit a venture called Pipavav Railways Corporation, in which the Ministry of Railways holds equity interest.
It owns and operates eight ports and terminals in India, including Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Katupalli in Chennai.
APSEZ on June 7, 2017 broke ground on construction of a new berth at a future deep water, container port at Vizhinjam in Kerala.
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