Sucheta Dalal :Gammon moves towards total buyout of Indira Container Terminal
Sucheta Dalal

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Gammon moves towards total buyout of Indira Container Terminal  

March 25, 2010

Gammon Infrastructure Projects Ltd (GIPL)—which currently holds 50% stake in Indira Container Terminal Pvt Ltd (ICTPL)—will be finalising the signing formalities by April for an additional 24% stake purchase in this terminal company, and the planned (subsequent) 26% stake purchase.


“The sign-off ceremonies for both the transactions should happen by next month,” said Parvez Umrigar, managing director, GIPL. “It is our partner’s desire to sign out on both the transactions together, so (that) they can be assured of a complete exit and not a halfway one,” added Mr Umrigar.


ICTPL is the special purpose vehicle (SPV) which is developing the offshore container terminal at the Mumbai Port Trust on a build-operate-transfer (BOT) basis. GIPL and Dragados SPL are the partners in the SPV. In December 2009, GIPL had announced its decision to purchase an additional 24% stake in ICTPL from Spain-based Dragados.


The first stake purchase of 24% will take GIPL’s total stake in the SPV to 74%. As Dragados plans to completely exit from the project, another 26% stake is on offer for GIPL. However, due to the concession agreement signed for the BOT project for developing the terminal, this additional 26% stake purchase can be completed only after six years.


“The 24% stake purchase is an immediate one, which does not involve any issues. However, as Dragados plans to exit the project completely, we require giving the company some understanding for the future 26% stake purchase. This additional 26% stake purchase needs some statutory formalities to be taken care of,” explained Mr Umrigar.


Dragados plans to globally exit from all of its shipping, ports and logistics projects, to focus on energy-based projects. “Their decision to exit gave (us) an opportunity,” added Mr Umrigar. — Amritha Pillay

-- Sucheta Dalal