Port Wings Maritime Exim Weekly Newspaper 29 Sept 2021 Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, September 29, 2021 8 Pages

APSEZ Fully Unlocks India’s Eastern Hinterland With Rs. 6,200 Cr Acquisition of Gangavaram Port Vizag

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Port Wings News Network dani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private Ports & Logistics company and the flagship transportation arm of the diversified Adani Group, has concluded acquisition of Government of Andhra Pradesh’s (GoAP) stake of 10.4% with a consideration of Rs 645 Cr. The boards of APSEZ and GPL have also approved the merger of GPL with APSEZ taking into consideration GPL’s valuation of Rs. 120 per share and fair value of APSEZ at Rs. 754.8 per share, resulting in a swap ratio of 159 shares in APSEZ for 1,000 shares in GPL for 58.1% stake held by DVS Raju and Family in GPL. The merger, which has an appointed date of 1 April 2021 and is subject to NCLT approvals, is expected to conclude by 31 March 2022. Earlier, in April 2021, APSEZ had acquired 31.5% from Windy Lakeside Investment Ltd, a Warburg Pincus affiliate, and had signed an agreement for controlling stake of 58.1% held by DVS Raju and Family. Post the merger of GPL and APSEZ, DVS Raju and family will receive approx. 4.8 Cr shares resulting in ~2.2% stake in APSEZ worth Rs 3,604 Cr. GPL is debt free with strong growth potential as part of the APSEZ portfolio. Transaction has been completed at an equity value of ~INR 6,200 Crs and implies an EV/ FY21 EBTIDA multiple of ~8.8x and results in EPS accretion of ~7%

to APSEZ FY 21 earnings. GPL is a 64 MMT capacity non-major port established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059 and is the gateway port for a hinterland spread over 8 states across Eastern, Western, Southern and Central India. This acquisition

significantly expands APSEZ’s access to several new markets. As a deep draft modern multipurpose port capable of handling fully laden Super Cape size vessels of up to 200,000 DWT, GPL handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. In FY21, GPL had a cargo volume of 32.8 MMT, revenue of Rs. 1,057 Cr and EBITDA of Rs. 625 Cr and PAT of Rs. 494 Cr. In Q1 FY22, GPL handled 8.7 MMT of cargo and reported revenue of Rs. 313 Cr, EBITDA of Rs. 215 Cr and PAT of Rs. 192 Cr. With several operational initiatives underway, GPL is all set to continue its strong growth and

margin expansion. “We are committed to accelerating the industrialization of Andhra Pradesh,” said Mr. Karan Adani, CEO and Whole Time Director of APSEZ. “The network of ports that we continue to build allows us to create an integrated mesh of logistics capabilities to deliver an unmatched set of services to our customers. Gangavaram is a major part of this mesh in one of India’s fastest growing states. We are excited about the growth prospects of GPL, which is core to our east coast expansion strategy. GPL is advantageously located to allow us unprecedented access to the largely untapped hinterland market.” The addition of Gangavaram Port to the Adani Group’s pan-India port network tremendously strengthens APSEZ’s integrated logistics approach. With strong business momentum, capital structure efficiencies and a commitment to net zero emissions by 2025, APSEZ continues to deliver great value to its shareholders. Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group has evolved from a port company to a Ports & Logistics Platform. It is the largest port Contd. on page -2

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Wing 8 Feather 7

New Delhi Port Wings News Network pread of coronavirus had a major impact on global shipping which has led to supply chain disruption for Indian export sector as well. Realizing the challenges faced by exporters due to acute shortage of containers, FIEO has taken a lead and developed a trade facilitation portal www.easeoflogistics.com to bring exporters and logistics service providers (LSPs) on a single platform. This was stated by Dr A Sakhtivel, President FIEO during the launch ceremony of the portal held at the ‘Samapan Samaroh of Vanijya Saptah’ on 27th September, 2021 at Niryat Bhawan, New Delhi. The portal was inaugurated by Shri Piyush Goyal, Hon’ble Union Commerce & Industry, Consumer Affairs & Public Distribution and Textiles Minister in the august presence of Shri Amit Yadav, Director General, DGFT and other Senior Officials from the Govt. President FIEO said that over 1800 exporters and over 300 service providers onboarded the portal during the soft launch. To ensure an effective response rate to exporters demand, FIEO has also obtained support from all the leading logistics associations including Container Shipping Lines (CSLA), Freight Forwarders (FFFAI) and Multimodal Transport Operators (AMTOI).

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Dr Sakthivel said that the portal offers a value proposition to all stakeholders. Exporters can post details of their container requirements directly to service providers for providing their best

Dr A Sakhtivel, President, FIEO

quotes, enabling exporters to chat, negotiate and finalize business. He expressed optimism that with wider visibility of demand, there will be better price discovery for exporters and their container fulfilment probability shall improve through this portal. On the other hand, with advance visibility of demands, the logistics service provider LSPs shall be in a better position to do equipment planning and container repositioning besides getting access to demands of pan India exporters giving them wider business outreach. FIEO President shared that all Export Promotion Councils have also welcomed this move and are advising their member exporters to also post their demand on FIEO’s portal.

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RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2021-2023 Posted at Pathrika Channel, Egmore, RMS, Chennai-8. Date of Publication - Wednesday, Posted on Wednesday (29.09.2021)


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