HYDERABAD: The Adani Group is reportedly in talks with Hyderabad-based Navayuga Engineering Company Ltd to acquire 72 per cent stake in the former’s crown jewel -- Krishnapatnam Port Company Ltd -- for an estimated Rs 5,500 crore.
Navayuga Engineering is the flagship entity of CVR Group and had developed the greenfield Krishnapatnam deep water sea port a decade ago in 2008. As on FY19, it handled 54.37 million tonnes of cargo. When contacted, both companies declined to comment.
According to reports, Navayuga Group will likely retain 28 per cent in the company besides also retaining key management roles. The proposed acquisition could also includes an equity stake held by international private equity investment player 3i Group, which had invested about $160 million in the company earlier.
Navayuga Group’s decision to offload majority stake in Krishnapatnam port company comes close on the heels of some disappointing developments.
Recently, the Government of Andhra Pradesh terminated two major contracts — one pertaining to the construction of Polavaram project and the other, the development of Machilipatnam Port. The port, which hit a rough patch when bulk cargo exports of iron ore sunk to the ground, overcame the turmoil by increasing other components of bulk cargo such as coal, edible oil and container terminal operations.