Adani Ports to divest stake in Abbot Point, Q3 net profit up 13%
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Adani Ports and SEZ Ltd (APSEZ) today posted 12.52 per cent growth in consolidated net profit at Rs 361 crore in the third quarter, and said it will divest almost the entire stake in Australia's Abbot Point Coal Terminal to the Adani family.
The Gujarat-based company had acquired a long term lease of 99 years for Abbot Point Coal Terminal in May 2011 for Australian dollars (AUD) 1.8 billion (about Rs 9,000 crore) in an all cash deal.
"We are divesting almost 100 per cent share (in Abbot Point Coal Terminal) to Adani family and will be keeping shares worth USD 1,000 only," APSEZ's Chief Financial Officer B Ravi told PTI, adding that valuation is yet to be done.
He said the Abbot Point stake divestment to Adani family will strengthen APSEZ's balance sheet and it can now focus more on Indian port sector, where "opportunities are better".
"Entire thing (acquisition of Abbot Point) was funded through debt. We had provided a corporate guarantee of USD 800 million. This will go off our balance sheet and our financials will improve," he said.
"It is yet to be done. APSEZ has so far invested about USD 235 million in Abbot Point and that's what we are looking at currently," Ravi said when asked about the valuation.
The divestment of stake is expected to be completed by March-April as it depends upon various regulatory clearances and formalities, he said, adding that post-divestment, Abbot Point Coal Terminal will become a privately owned company, belonging to Adani family.
Meanwhile, the consolidated net profit of the company has also gone up by 12.52 per cent to Rs 361.09 crore for the October-December quarter, mainly on account of 52 per cent jump in sales, which stood at Rs 1,340.21 crore.
The Adani Group company had reported a net profit of Rs 320.90 crore and net sales of Rs 881.09 crore in the third quarter of FY'12.