APM Terminals in talks to acquire majority stake in port concession in Tamil Nadu

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APM Terminals in talks to acquire majority stake in port concession in Tamil Nadu

According to Indian newspapers, APM Terminals is in early discussions to buy majority stake in the Indian port Kattupalli International Container Terminal in the Indian state of Tamil Nadu.

Larsen & Toubro (L&T) has engaged L&T Infra Finance's advisory services to look for potential buyers for the 97% stake that L&T has in the Kattupalli port project.

State Government entity TIDCO holds the remaining stake.

According to sources, L&T is looking at an enterprise value of between US$370 million to US$402 million for its stake in the port.

The terminal, with a capacity to load 1.2 million standard containers a year, is part of a port complex that L&T Shipbuilding has built  jointly with state government entity TIDCO at Kattupalli with an investment of Rs.3,989 crore (US$641 million).

The Kattupalli shipyard and port was awarded to L&T in 2008 for development and operations for 30 years by the Tamil Nadu government without any competitive bid.

The terminal is operated and managed by Manila-based port operator International Container Terminal Services Inc. (ICTSI). L&T had signed a port operation agreement with ICTSI in April 2011. L&T pays a fixed fee to ICTSI on each container handled at the terminal, according to the agreement signed between L&T and ICTSI.

APM Terminals is an international container terminal operating company headquartered in The Hague, Netherlands. It holds 43.01 per cent stake in publicly-listed Gujarat Pipavav Port and runs a container terminals named Gateway Terminals at Jawaharlal Nehru Port Trust (JNPT) in Mumbai.

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