JSW Infra frontrunner to buy APM Terminals' stake in Gujarat Pipavav Port

JSW Infra's listing and capacity enhancement plans make it an aggressive bidder

The Sajjan Jindal-led JSW Infrastructure was the best contender for acquiring APM Terminals' 43.01 per cent stake in Gujarat Pipavav Port, sources close to the development said on Friday.

APM Terminals is seeking to exit Gujarat Pipavav and has approached various players to buy its stake. Sources said JSW Infrastructure could be most interested in the acquisition.

“JSW Infrastructure will be ready to pay a premium to acquire the stake in Gujarat Pipavav. This acquisition will help it in automatically being listed on the stock exchanges,” a banking source told Business Standard.

To a query from Business Standard, a spokesperson for Gujarat Pipavav Port said, "We do not comment on speculative news." An email to JSW Infrastructure remained unanswered. 

JSW Infrastructure is planning an initial public offering in 2019-20. Its ports and terminals in Maharashtra and Goa have a capacity of 33 million tonnes, which the company plans to raise to 200 million tonnes within the next four years. Gujarat Pipavav recently completed its capacity expansion, taking its container throughput handling capacity to 1.35 million TEU (twenty-foot equivalent unit) from 850,000 TEU. The port handles containers, bulk, liquid and roll-on/roll-off cargo. With a 43.01 per cent stake, APM Terminals is the largest shareholder in Gujarat Pipavav.

“For JSW Infrastructure, Gujarat Pipavav fits into its plan of port expansion, geographical as well as segment-wise,” another source said.

Through this acquisition, JSW Infrastructure will acquire a much-needed presence in the container business. Also, the company will gain a presence in Gujarat, the state that draws the most maritime cargo. 

A news report last month had said Adani Ports was a contender for Gujarat Pipavav, but both companies denied the development. “Adani may have the money, but with its recent of acquisition of the Dhamra port and its greenfield port at Vizhinjam in Kerala, the company may not burden its balance sheet further,” said the banking source.