Indian, Belgian Ports Form Strategic Alliance
India's Essar Ports announces a long-term strategic alliance with Port of Antwerp International ("PAI") and an investment of approx. Rs 175 crore by PAI in Essar Ports
PAI is the international investing arm of the Antwerp Port Authority, which is the port authority of the port of Antwerp, the 2nd largest port in Europe handling 187 MMT of cargo in 2011, and a gateway to many European economies.
Highlights:
• Port of Antwerp International has invested approx. Rs 175 crore in Essar Ports at a price of Rs 100 per equity share of the company through Global Depository Receipt
• Partnership for technical assistance for port planning, process improvement, and quality and productivity improvement
• Mutual assistance for the growth of port traffic between Port of Antwerp and Ports of Essar
The Antwerp Port Authority and Essar Ports will collaborate in the areas of training and consultancy services, port planning, traffic flow, quality and productivity improvement and will further build a mutually beneficial commercial relationship based on mutual business and investment preferences. Both Essar Ports and PAI will mutually assist in the growth in the volume of their businesses.
As a part of the Strategic Alliance Agreement signed between the two parties, PAI has invested approx. Rs 175 crore in Global Depository Shares ("GDS") of Essar Ports at a price of Rs 100 per share equity share underlying the GDS. These GDS would form approximately 4% of the diluted equity share capital of Essar Ports. PAI's investment in Essar Ports is long-term and strategic in nature, focusing on the commercial relationship between the two companies and mutually enhancing the productivity, skill set and performance. PAI will also have the right to nominate a director on the Board of Essar Ports.