Larsen & Toubro’s (L&T) arm - L&T Infrastructure Development Projects (L&T IDPL) and Tata Steel have executed a definitive agreement with Adani Ports & Special Economic Zone (APSEZ) to sell 100% stake in the Dhamra Port Company (DPCL) 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.
DPCL is a 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 L&T IDPL’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.
