L&T Infrastructure Development Projects (L&T IDPL) and Tata Steel, today announced that they have executed a definitive agreement with Adani Ports & Special Economic Zone to sell 100% stake in the Dhamra Port Company (DPCL) for an enterprise value of around Rs 55 billion.
As per the agreement entered into amongst the parties, the transaction is subject to customary conditions precedent including lenders/ third party approvals.
DPCL is 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 dedicated 62.7 km rail link to Bhadrak. In FY 2014, DPCL handled 14.3 mtpa of cargo.
As part of Tata Steel's 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.
