New Delhi:  Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday said that it has entered into a definitive agreement to purchase a 56% stake in the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL).

“The acquisition is made at an enterprise value of Rs 3,080 crore, and the transaction is subject to statutory approvals and the fulfillment of other conditions and precedents,” APSEZ said in a media release.

It further said, “In addition to the enterprise value stated above there is a contingent consideration of Rs 270 crores estimated to be payable after 5.5 years, subject to the fulfillment of certain conditions as agreed with the sellers.”

Gopalpur port is located on the east coast of India and has the capacity to handle 20 million metric tonnes per annum (MMTPA). The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach,” said Karan Adani, Managing Director of APSEZ.

As a deep draft, multi-cargo port, Gopalpur port handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina, and others.

The concessionaire has full flexibility to design and expand the port as per market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.

The Gopalpur port is well connected with its hinterland through the national Highway NH16, and a dedicated railway line connects the port with the Chennai-Howrah main line.