Adani Ports and Special Economic Zone (NSE:ADANIPORTS, BOM:532921) has agreed to sell a 49% stake in Adani Vizhinjam Port to TiL, the terminal arm of Mediterranean Shipping Company, for $1.40 billion, according to a Tuesday filing to the Indian stock exchanges.
Under the pact signed on Monday, the consideration will be paid in two tranches of $539 million and $858 million, contingent on completion of the expansion by December 2028.
Vizhinjam port has a capacity of 1.6 million twenty-foot equivalent units (TEUs) and is undergoing expansion that will increase capacity by 3.5 times to 5.7 million TEUs.
The transaction is subject to customary approvals, including regulatory ones.
This is the third strategic partnership between Adani Ports and TiL after their collaborations at Mundra and Ennore ports.
The company's shares were up over 1% in recent trade.