Last Updated : Saturday, March 9, 2019 13:27:40

Kandla Port acquires 18% stake in Dredging Corp of India

VISHAKHAPATNAM | NEW DELHI | MUMBAI | KANDLA-GANDHIDHAM | RAJKOT – Deendayal Port Trust (aka Kandla Port) has acquired 18% stake in Dredging Corporation of India Ltd acquiring 5 million (~50,40,101) shares, along with other three port trusts including Vishakhapatnam Port Trust, Paradip Port Trust and Jawaharlal Nehru Port Trust (aka Mumbai Port).

Vide the stake sale process as initiated by Government of India on behalf of Shipping Ministry, 73.47% stake of Dredging Corporation of India Ltd comprising of 20 million (~2,05,72,013) shares has been acquired by four major port trusts in India.

Dredging Corp of India (Seller) will sell its 73.74% stake to Vishakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust, was agreed upon mutually through a share purchase agreement.

In an update submitted to the Indian Exchanges on Friday and Saturday by Dredging Corp of India, entire detailing of stake sale is stipulated.

“The Share Purchase Agreement (“SPA”) dated March 8, 2019 has been executed by the Seller and the Purchasers pursuant to which 2,05,72,013 (Two Crores Five Lakhs Seventy Two Thousand and Thirteen) equity shares of the Dredging Corporation of India Limited (“DCIL”), representing 73.47% (Seventy Three point Four Seven percent) of the total paid-up share capital of DCIL held in the name of the Seller have been transferred along with transfer of Control to the Purchasers resulting in change of the Promoters,” the statement read.

Vide the agreement, Visakhapatnam Port Trust will acquire majority stake comprising of 5.4 million shares (~54,51,710) equivalent to 19.47% equity, followed by equal number of balance 5 million (~50,40,101) shares each by Paradip Port Trust, Jawaharlal Nehru Port Trust (Mumbai Port) and Deendayal Port Trust (Kandla Port) totaling to 15 million shares.

Subsequently, with the stake sale undertaken Six present directors of Dredging Corporation of India Ltd, comprising of Chairman & Managing Director of the Company, Director (Operations & Technical), Two Government appointed Directors and Two Independent Directors have resigned from the present Company Board.

Whereas Six new additional directors have been appointed on the Dredging Corporation of India’s company board, following the stake sale and stake acquisition.


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