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Essar Ports likely to sign stake sale deal with Port of Antwerp

11 May 2012 Evaluate

Ruia-family promoted, Essar Ports is expected to sign a stake sale deal with one of the largest ports in Europe - Port of Antwerp, in the next two months. Further, with a view to expand, the company, which operates four port facilities at Hazira, Salaya, Vadinar and Paradip, will also increase its presence in container terminal business in India.

The company at the moment is in talks and is likely to seal the deal in the next two months. Port of Antwerp is also looking to invest in India. The funding would be a fresh investment and is not related to lowering promoter holding to 75% from the 83% to meet a recent norm from capital market regulator SEBI.

It is also reported that Port of Antwerp is likely to invest about $25-50 million for a less than 10% stake in Essar Ports. Last year, Port of Antwerp had signed a Memorandum of Understanding (MoU) with Essar Ports to provide advisory and consultancy, investment, training and enhancing commercial relations in India and abroad.

The company is looking to increase capacity to 158 million tonne from 88 million tonne and funds will be required if it has to complete another 50% of the capacity.

Essar Ports has been involved in liquid and bulk cargo business, but with the central government's ambitious plan to award more than 25 port projects in the current fiscal, the company will now look for tie-ups to venture into the container terminal business as part of its expansion.

Peers
Company Name CMP
Shipping Corpn. 288.30
GE Shipping 1404.20
Dredging Corp 941.70
Seamec 1524.50
Shreeji Ship.Global 374.95
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