Warburg Pincus to Affiliate with Adani Ports and Special Economic Zone (APSEZ)

Mar, 2021 - By WMR

On March 08, 2021, Warburg Pincus decided to buy 0.49% stakes of ASPEZ for US$ 110 million, joining other investors such as Fidelity, GIC, and LIC.

India’s largest private port operator, Adani Port and Special Economic Zone (APSEZ) has been on a spree of acquisitions since last five months. The Gautam Adani-owned company has most recently acquired around 31% stakes of GPL (Gangavaram Port Ltd) for an enterprise cost of US$ 260 million through a New York-based equity firm, Warburg Pincus LLC. In February 2021, APSEZ had finalized the acquisition of Dighi Port Ltd for US$ 10 million valuation cost. Back in October 2020, the company has acquired 75% stakes of KPCL (Krishnapatnam Port Co. Ltd) for an undisclosed price. These domestic acquisitions have boosted the market share of APSEZ by 30% as the company now owns around 12 major ports of India across the industrial area, logistics sector, and coastline region. APSEZ also operates about 25% of cargo movement in the country.

After the several financial outflows of cash, APSEZ is about to receive an inflow of cash from its latest intermediary, Warburg Pincus which will be buying 0.49% stakes of the company for US$ 110 million. The American firm will be allotted around 10 million equity shares, confirmed APSEZ, which has led to a rough 7% hike in its shares following this announcement. This newest funding marks the sixth major investment in the APSEZ consortium following other investors such as GIC, Norges, LIC, Fidelity, and Temasek.

The subsidiary of Adani Group is poised to disclose an agreement of developing the West Container Terminal (WCT) at the Colombo Port. This deal will take place under the G2G (government-to-government) or inter-governmental agreements with a potential investment of over US$ 1 billion.