Shapoorji Pallonji set to acquire 51% in Gopalpur port

28 November 2016

Shapoorji Pallonji has agreed to buy a 51% stake in Odisha’s Gopalpur port. Orissa Stevedores Ltd (OSL), one of the three original promoters, will hold the remaining 49%. This comes as OSL’s founder Mahimananda Mishra is wanted by police investigating a murder that took place last month.

The second private port in Odisha, the Gopalpur project was won by a consortium of OSL, metal trader Sara International and Hong Kong-based Noble Group in 2006. Developed from a minor to an all-weather port on a BOOT (Build, Own, Operate, Transfer) model, any change in ownership requires state government approval. Noble exited the special purpose vehicle (SPV) in 2010. Shapoorji will be mostly acquiring Sara International’s stake.

A Shapoorji Pallonji group spokesperson confirmed the acquisition plan and said it would invest fresh money in the port.

“At this stage of the transaction, due diligence and documentation are in progress and government clearance is awaited. This acquisition is a part of our larger group strategy to play a meaningful role to build marine infrastructure particularly around development of bulk, liquid and LNG (liquefied natural gas),” said the spokesperson.

Halfway between Paradip port and Vishakapatnam, Gopalpur was well placed to serve the plant Tata Steel was planning to build nearby at the time that bids were floated. In the midst of an expansion, the port took a beating in 2013 when cyclone Phailin hit landfall nearby.

Source – ET