NEW DELHI: Ahmedabad-based Adani Ports and Special Economic Zone Ltd (APSEZ) is acquiring 49% stake in Indian Oil Tanking Ltd, a joint venture between state-run IndianOil Corporation and the Indian wing of Germany’s Oiltanking GmbH, for Rs 1,050 crore in an all-cash deal.
The deal will see APSEZ acquiring Oiltanking India’s 49.3% stake in Indian Oiltanking along with Oiltanking GmbH’s 10% stake in IOT Utkal Energy Services Ltd, a subsidiary of Indian Oiltanking. According to transaction advisor E&Y, the deal is expected to be completed in two months.
“With this acquisition, APSEZ’s oil storage capacity jumps 200% to 3.6 million kilolitre, making it India’s largest third-party liquid storage company. This ties well with our ambition to become the largest transport utility globally,” a company statement quoted CEO Karan Adani as saying.
This is APSEZ’s second major oil storage and terminalling deal this year. The company had on March 9 signed an agreement with IndianOil to augment the latter’s tank farm capacity of 7.2 million tonne at Mundra port to enable handling and blending of an additional 10 million tonne of oil per annum.
According to Adani, the latest deal is in line with the strategy of diversifying the cargo mix with focus on products and services with higher realisation and margins.
“The deal will further strengthen our strategic partnership with IndianOil, a key stakeholder and India’s largest refiner and customer of oil storage tanks,” the statement quoted Adani as saying.
Indian Oiltanking has terminals in Navghar and Jawaharlal Nehru Port Trust (Maharashtra), Paradip (Odisha), Raipur (Chhattisgarh), Goa, Dumad (Gujarat) terminals. It also has a biogas plant Namakkal, Tamil Nadu.
The deal will see APSEZ acquiring Oiltanking India’s 49.3% stake in Indian Oiltanking along with Oiltanking GmbH’s 10% stake in IOT Utkal Energy Services Ltd, a subsidiary of Indian Oiltanking. According to transaction advisor E&Y, the deal is expected to be completed in two months.
“With this acquisition, APSEZ’s oil storage capacity jumps 200% to 3.6 million kilolitre, making it India’s largest third-party liquid storage company. This ties well with our ambition to become the largest transport utility globally,” a company statement quoted CEO Karan Adani as saying.
This is APSEZ’s second major oil storage and terminalling deal this year. The company had on March 9 signed an agreement with IndianOil to augment the latter’s tank farm capacity of 7.2 million tonne at Mundra port to enable handling and blending of an additional 10 million tonne of oil per annum.
According to Adani, the latest deal is in line with the strategy of diversifying the cargo mix with focus on products and services with higher realisation and margins.
“The deal will further strengthen our strategic partnership with IndianOil, a key stakeholder and India’s largest refiner and customer of oil storage tanks,” the statement quoted Adani as saying.
Indian Oiltanking has terminals in Navghar and Jawaharlal Nehru Port Trust (Maharashtra), Paradip (Odisha), Raipur (Chhattisgarh), Goa, Dumad (Gujarat) terminals. It also has a biogas plant Namakkal, Tamil Nadu.
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