L&T Infrastructure Development Projects , a subsidiary of L&T, and Tata Steel Limited , today announced that they have executed a definitive agreement with Adani Ports & Special Economic Zone (“Adani Ports”) to sell 100% stake in the Dhamra Port Company Limited (“DPCL”) for an Enterprise Value of around ` 5500 crore, the company said in its press release.
As per the agreement entered into amongst the parties, the transaction is subject to customary conditions precedent including lenders / third party approvals. DPCL is a 50:50 joint venture between L&T IDPL and Tata Steel. The port was commissioned in May 2011 with an 18 km approach channel and a ded icated 62.7 km rail link to Bhadrak. In FY 2014, DPCL handled 14.3 mtpa of cargo.
Dhamra Port is a deep draft, all weather multi - user port located on the East Coast of India in the state of Odisha. Dhamra Port has been granted a concession by the Governm ent of Odisha to build and operate a port on BOOST (Build, Own, Operate, Share and Transfer) basis. Dhamra Port c ommenced operations in May 2011. As part of L&T IDPL’s review of its investments portfolio, the Board of the Company has approved the divestment of its equity holding on the JV at an attractive valuation.