APSEZ concludes acquisition of Oiltanking India GmbH’s 49.38% equity stake in IOTL
Ahmedabad: Gautam Adani-led Adani Ports and Special Economic Zone Ltd (APSEZ) on Wednesday said it has successfully concluded the acquisition of Oiltanking India GmbH’s 49.38% equity stake in Indian Oiltanking Ltd (IOTL), which is one of India’s largest developer and operator of liquid storage facilities.
Acquisition of an additional 10% equity stake in IOT Utkal Energy Services Ltd, a 71.57% subsidiary of IOTL is also concluded. Oiltanking India GmbH is wholly owned subsidiary of Oiltanking GmbH.
The shares of APSEZ plunged 0.60% to Rs.609 in the early hours on the NSE.
In November last year, APSEZ had entered into a definitive agreement for the acquisition. Last year, IOTL had signed a 25-year BOOT contract with Numaligarh Refinery Ltd for the construction, operation, and maintenance of 0.6 Mn KL crude storage tanks at the Paradip Port. The majority of IOTL’s tank capacity is contracted by reputed PSUs and oil majors. With around 80% of IOTL’s capacity under ‘Take-or-Pay’ contract, there is a good visibility on the future cash flows of the company.