Gammon to buy remaining half of Mumbai's offshore CT

INDIA's Gammon Infrastructure Projects Ltd has announced it will acquire Spanish company Dragados Servicios Portuarios y Logisticos SL's stake in their 50:50 offshore terminal joint venture, Indira Container Terminal Pvt Ltd for an undisclosed sum.

Gammon Infrastructure plans to buy 24 per cent from Portarious and purchase the remaining 26 per cent three years after Indira Container's offshore container terminal begins commercial operations at an undetermined date, reports the Wall Street Journal.

It cited Gammon Infrastructure Projects' managing director, Parvez Umrigar, as telling the Dow Jones Newswires that the first phase of the offshore terminal will have an annual cargo handling capacity of 1.3 million ton equivalent units.

According to Mr Umrigar investment in the first phase of development is expected to be INR10.50 billion (US$225.3 million).

"The project has already achieved its financial closure. It's a milestone in terms of equity requirements. Gammon already has an enabling resolution for its equity financing to the extent of $100 million," said Mr Umrigar in an interview on CNBC-TV18.

In response to the question on whether the company will need to raise any more equity capital to finance the purchase of the initial 24 per cent stake, he added: "The initial equity infusion has already come in, so to that extent this particular project will not require any equity additional infusion in the project for the next year or so."

Source: www.schednet.com