Adani Ports and Special Economic Zone (APSEZ) on Friday said its subsidiary company has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage a terminal at the Dar es Salaam Port in the East African country.
The Dar es Salaam Port is a gateway port with a well-connected network of roadways and railways, and the concession agreement signed by Adani International Ports Holdings Pte Ltd (AIPH) marks the entry of Adani Ports into Tanzania.
The Adani Ports-led consortium will acquire the project company in Tanzania, which houses all port handling equipment and employees for an amount of $39.5 million, APSEZ said in a statement.
East Africa Gateway Ltd (EAGL) has been incorporated as a joint venture of AIPH, AD Ports Group, and East Harbour Terminals Ltd (EHTL), the statement added.
APSEZ will be the controlling shareholder and will consolidate EAGL on its books. EAGL has signed a share purchase agreement for the acquisition of a 95 per cent stake in Tanzania International Container Terminal Services Limited from Hutchison Port Holdings (and its affiliate Hutchison Port Investments) and Harbours Investment for a purchase consideration of $39.5 million.
Shares jump
Shares of the Adani group ended higher on Friday after its listed firms gained ₹84,122 crore as US-based brokerage firm Jefferies put a buy recommendation on four of its group stocks, including Adani Enterprises.
The Adani group saw a 55 per cent profit surge in the fiscal year ended March 2024 as the apples-to-airport conglomerate is back on an expansion spree and eyeing a $90 billion capex over the next decade.
The Adani group in 2023-24 focused on containing debt, reducing founder share pledge and consolidating business in core competencies. This helped net profit surge to ₹30,767 crore for the group’s listed companies in the fiscal from ₹19,833 crore a year ago.
“Total group EBITDA grew 40 per cent year-on-year in FY24 (5-year CAGR of over 27 per cent), group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group companies and group Mcap rebounded,” Jefferies said in a note. “The group is back on an expansion spree and eyeing $90 billion capex over next decade.”
PTI
