JSW Infrastructure Unit To Buy Majority Stake In PNP Port From SP Group

JSW Dharamatar Port to acquire a 50% stake plus one share of PNP Maritime Services from Shapoorji Pallonji Group for 270 crore rupees ($32.4 million)
JSW Infrastructure Unit To Buy Majority Stake In PNP Port From SP Group

JSW Infrastructure Ltd. will acquire a majority stake in PNP Maritime Services Private Ltd. (PNP Port) from the Shapoorji Pallonji Group for 270 crore rupees ($32.4 million) in cash.

The company’s unit JSW Dharamatar Port agreed to acquire a 50% stake plus one share of PNP Port, an operating port company, from SP Port Maintenance Private Ltd., JSW Infrastructure said in a stock exchange announcement.

The acquisition values PNP Port at an enterprise value of around 700 crore rupees, it added.

PNP Port is operating multi-purpose jetties at Shahabad in Raigad district of Maharashtra, with a current capacity of 5 million tons per annum (MTPA).

The port, which is well connected with road and rail facilities, has a very strategic locational advantage on the west coast of India and direct access to large cargo centers such as Mumbai, Pune, Mumbai, Palghar, Thane, Pune, Solapur, Bhiwandi and Nasik.

Strategic Asset

JSW Infrastructure said the acquisition of PNP Port is a strategic asset for the group, as it will allow the company to service growing share of third-party customers in India and derive huge synergies with its existing ports and terminals.

The acquisition is part of JSW Infrastructure’s strategic direction to explore opportunities to expand organically and inorganically as well as to provide end-to-end logistics services near the cargo consumption/generation centers, it added.

The company said PNP Port is likely to strengthen JSW Infrastructure’s position to provide hub & spoke model services to customers, thereby saving substantially in the logistics costs.

JSW Infrastructure plans to upgrade the PNP Port’s facilities and expand its capacity from current 5 MTPA to 19 MTPA in a phased manner.

The deal is likely to conclude within 15 days, subject to conditions.

Note: $1 = 83.2058 Indian rupees

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