The acquisition is valued at Rs. 1,954 crore and subject to regulatory approvals.
APSEZ is acquiring the Warburg Pincus stake of 16.3 crore shares (31.5%) at Rs 120 per share which works out to a consideration of Rs 1,954 crore.
The transaction implies EV/EBITDA multiple of 8.9x and P/E multiple of 12.0x (based on FY20 figures). APSEZ is also in discussions with DVS Raju & Family for their 58.1% stake (30 crore shares) in GPL.
GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second largest non major port in Andhra Pradesh with a 64 milliom metric tons established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059. It is an all weather, deep water, multi-purupose port capable of handling fully laden super cape size vessels of upto 200,000 DWT.
Currently, GPL operates 9 berths and has free hold land of 1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.
In FY20, GPL had a cargo volume of 34.5 MMT, generated revenue of Rs 1,082 crore, EBITDA of Rs634 crore (margin of 59%) and PAT of Rs 516 crore. GPL is debt free with cash balance of over Rs 500 crore.
The company has a paid up equity share capital of 51.7 crore shares of which 58.1% is owned by DVS Raju and Family (Promoter), 10.4% by Government of Andhra Pradesh and 31.5% by Warburg Pincus.
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