Tata Steel, L and T IDPL divest their stake in Dhamra Port
Posted on May 17 2014 | IBNS
Mumbai, May 16 : L and T Infrastructure Development Projects Limited and Tata Steel Limited, on Friday announced that they have executed a definitive agreement with Adani Ports and Special Economic Zone to sell 100pc stake in the Dhamra Port Company Limited for an Enterprise Value of around Rs 5,500 crore.
As per the agreement entered into amongst the parties, the transaction is subject to customary conditions precedent including lenders / third party approvals, the company said in a statement.
DPCL is a 50:50 joint venture between L and T IDPL and Tata Steel. The port was commissioned in May 2011 with an 18 km approach channel and a dedicated 62.7 km rail link to Bhadrak. In FY 2014, DPCL handled 14.3 mtpa of cargo.
As part of Tata Steel review of its investments portfolio, the Board of the company has approved the divestment of its equity holding in the JV at an attractive valuation.
To secure its long term requirement and access to a deep-water port for its operations in Jamshedpur and Odisha, Tata Steel has also entered into a long-term cargo handling arrangement with DPCL.