Global Infra to buy 25% in CCT

Global Infrastructure Partners (GIP), a private equity firm, has agreed to buy 25 per cent stake in Chennai Container Terminal Pvt Ltd (CCT) through its International Port Holdings (IPH) portfolio company.

GIP will buy the 25 per cent stake from two investors.

The remaining 75 per cent stake is owned by Dubai Ports World, which at present operates the CCT, which was originally built and developed by P&O Ports, a global port operator. The financial terms of the transaction were not disclosed.

CCT is located within the Chennai Port on the south east coast of India, serving the strategically-important trade route between Europe and the Far East.

Since its opening in 2001, CCT's volume has grown at a compound annual growth rate of 18.7 per cent making it the second fastest growing container terminal in the country, said a company statement.

Adebayo Ogunlesi, chairman and managing partner of Global Infrastructure Management, LLC, said, "CCT provides a significant opportunity to gain a foothold in one of the most promising areas in the port sector, and the facility itself offers tremendous potential for further development.

This investment significantly advances our global strategy of adding well-run port operating assets to GIP's IPH portfolio."

The transaction is subject to clearances from the Centre and the Chennai Port Trust.

GIP invests in global infrastructure assets across both Organisation for Economic Cooperation and Development (OECD) and select emerging market countries. Credit Suisse and General Electric are the founding investors of GIP.