The transaction is subject to customary regulatory approvals, it said in a regulatory filing.
The investment values AVPPL at $2.85 billion, with TiL’s investment representing its proportionate 49% share. APSEZ will retain the remaining 51% stake, continue to hold the majority of board seats and consolidate AVPPL as its subsidiary after the transaction.
According to the company, TiL’s investment will be made in two tranches. The first tranche of $539 million will be paid towards the acquisition of the 49% stake, while the remaining $858 million will be invested upon completion of the ongoing expansion of the Vizhinjam port by December 2028 through participation in the project’s debt and equity.
Speaking on the stake sale, Ashwani Gupta, Whole-time Director and CEO, APSEZ said, “I am delighted to expand APSEZ’s long-standing partnership with MSC to Vizhinjam, as we prepare for the port’s next leg of journey. I am confident that our association will deliver enhanced supply chain efficiencies at a global scale and improve India’s access to key global mature and developing markets.”
The companies said the partnership is expected to attract higher share of Bangladesh cargo, enhance cargo volume visibility, accelerate the ramp-up of Vizhinjam port and strengthen its position as a major transshipment hub in the Indian Ocean region. The deal also marks the third strategic partnership between APSEZ and TiL after their collaborations at Mundra and Ennore ports.
Commissioned in December 2024, Vizhinjam is India’s first deep-draft mega transshipment port. It currently has a handling capacity of 1.6 million TEUs, which is being expanded to 5.7 million TEUs by December 2028.