PE fund to buy 25-per cent stake in Chennai container terminal
29 Jun 2007
Mumbai: Private equity firm Global Infrastructure Partners (GIP) will buy a 25-per cent stake in the Chennai Container Terminal Private Ltd (CCT) for an undisclosed sum, through its International Port Holdings (IPH).
The transaction is conditional on obtaining regulatory clearance from the government of India and approval from the Chennai Port Trust".
CCT was built and developed by P&O Ports and is now operated by Dubai Ports World, which holds the remaining 75 per cent interest in it. Since its inception in 2001, CCT''s traffic volume has grown at a compounded annual rate of 18.7 per cent, making it the second fastest growing container terminal in the country.
The
terminal serves the strategically important trade route
between Europe and the Far East.
Adebayo Ogunlesi, chairman and managing partner, Global Infrastructure Management was quoted in a company release as saying, "We are delighted that one of our first emerging market investments is in such a high- growth, high-quality asset within India''s manufacturing hub.
"CCT provides a significant opportunity to gain a foothold in one of the most promising areas in the port sector... This investment significantly advances our global strategy of adding well-run port operating assets to GIP''s IPH portfolio.