Warburg Pincus in talks to sell Gangavaram stake

Warburg Pincus has reportedly begun talks with UAE ports operator DP World to sell its 31.5% share in Gangavaram Port Photo: Chinni/Wikimedia Commons/Public Domain Warburg Pincus has reportedly begun talks with UAE ports operator DP World to sell its 31.5% share in Gangavaram Port Photo: Chinni/Wikimedia Commons/Public Domain
Industry Database

American private equity firm Warburg Pincus has reportedly begun talks with UAE ports operator DP World to sell its 31.5% share in Gangavaram Port, the deepest port in India.

According to Mint, one of two people who spoke on condition of anonymity said that the US company had hired investment bank UBS to find a possible buyer for its stake in the port.

They also claimed that the port is valued at between $1bn and $1.4bn, and that Warburg plans to sell its share for $300m to $400m.

The other anonymous person reportedly said that other interested entities include Adani Ports and Special Economic Zone and JSW Infrastructure.

Additionally, they reportedly claimed that while Warburg plans to sell its share, the other shareholders in Gangavaram Port have no immediate plans to sell their stakes.

The port is currently 58.11%-owned by chairman of the board, and managing director of the port, DVS Raju and his family and 31.5%-owned by Warburg Pincus, with the government of the Indian state of Andhra Pradesh, in which the facility is located, holding the remaining share. In 2007, Warburg invested around Rs150 crore ($40m) in the port.

Last year, DP World announced its plan to invest $1bn in India over the next few years.

It has already invested $1.2bn in the country and runs six terminals, including Chennai Container Terminal and India Gateway Terminal at Cochin Port, with the operator owning a 30% market share of India’s container trade.

“We are always looking out for the right opportunities,” a spokesperson for DP World told Mint.

“We don’t comment specifically on any unless there is something to announce.

“We plan to increase our market share by increasing capacity at key locations and developing our beyond-the-gate strategy.”

LATEST PRESS RELEASES

ShibataFenderTeam supplied fenders for the largest port project at the Caspian Sea

In 2016 we were awarded with the supply of fender systems for the entire new port of Turkmenistan's ... Read more

SOGET and Microsoft: a strategic partnership for a secure digitization of ports in France and worldwide

SOGET, world specialist in Port Community Systems (PCS), and Microsoft, world leader in technology, ... Read more

New Fourth Generation (4G) Performance Pack Upgrade for Existing Echoscope® Users

The new Echoscope® 4G Performance Pack Upgrade presents an opportunity for our existing customers to... Read more

Coda Octopus Products Selected to Collaborate on One of Five Premier Scottish-Japanese "Joint Ocean Innovation" Strategic Subsea Projects

The Nippon Foundation and Scottish Enterprise R&D Program provides funding of up to $32 million over... Read more

ShibataFenderTeam Agent Network is growing

ShibataFenderTeam permanently sustains and develops its agent network. Read more

Mannion Marine Limited Launched

Martin Mannion, former AECOM head of ports EMIA region, has launched Mannion Marine Limited, offerin... Read more

View all