Adani Ports and SEZ looks to acquire Karaikal Port.

Adani Ports and Special Economic Zone Ltd. (APSEZ) is looking to buy Karaikal port in Puducherry at a valuation of ₹1,500-2,000 crore but multiple sources said that the deal is “not easy” to consummate given the ownership structure and the debt.

Marg Ltd, the promoter of the port, holds 45 per cent stake in Karaikal Port Private Ltd. (KPPL).

Four private equity funds - Ascent Capital Advisors India Pvt Ltd, Jacob Ballas Capital India Pvt Ltd., Affirma Capital India and GIP India - together hold 44 per cent stake in the Karaikal Port Pvt Ltd and the balance 11 per cent equity is held by Edelweiss Asset Reconstruction Co Ltd.

The port operating company has a debt of about ₹2,000 crore of which 97 per cent is with Edelweiss ARC after it took over the loans from a consortium of state-run banks.

“The discussion is now on how they are going to share the enterprise value of the deal between the equity and debt holders,” said a person familiar with the talks.

“The structure appears to be insurmountable; its not easy for APSEZ to acquire Karaikal port,” said a port consultant.

HBL