Port of Antwerp acquires 4 -% stake in Essar Ports for Rs175 crore

30 May 2012

The Port of Antwerp International (PAI) has acquired around 4 per cent of the diluted equity share capital of Essar Ports by investing an equivalent of Rs175 crore in global depository shares (GDS) of Essar Ports.

Essar Ports Limited, one of the largest private sector port companies in India, has entered into a long-term strategic alliance with the Antwerp Port Authority, under which the Port of Antwerp International (PAI), the investing arm of Antwerp Port authority, will invest around Rs175 crore in Essar Ports.

PAI will also have the right to nominate a director on the board of Essar Ports and Jan Adam, CFO of the Port of Antwerp has been appointed as non-executive director on the board of Essar Ports Ltd.

The Port of Antwerp International, which runs the port of Antwerp, the second-largest port in Europe and a gateway to many European ciuntries, and Essar Ports will collaborate in the areas of training and consultancy services, port planning, traffic flow, quality and productivity improvement.

Both Essar Ports and PAI will build a mutually beneficial commercial relationship based on investment preferences and assist each other in growing businesses volumes.

''Essar Ports is a highly regarded, strong and reliable partner with a lot of know-how in India. We will rely on them for the development of port activities in India, one of the strategic regions of our daughter company PAI. The port of Antwerp will share her knowledge and expertise on port development and strategy with Essar Ports. This added value for both parties will create breeding grounds for further development of both regions,'' Marc Van Peel, president of the Antwerp Port Authority, said on the occasion.