JSW Infrastructure Acquires 51% Stake in Oman Port Project
Filing Summary
JSW Infrastructure Limited, through its step-down subsidiary JSW Overseas FZE, has executed a definitive agreement to acquire a 51% equity stake in South Minerals Port Company SAOC, Oman. The acquisition involves a cash consideration and is subject to regulatory approvals in Oman. The Port SPV will develop a 27 Million Tonnes Per Annum capacity port with a total project capital expenditure of USD 419 Million. The transaction is expected to be completed within 60 days post-fulfillment of conditions precedent. This acquisition marks a strategic expansion in the port sector for JSW Infrastructure.
JSW Infrastructure Limited has announced that its step-down wholly owned subsidiary, JSW Overseas FZE, has entered into a Share Subscription and Purchase Agreement to acquire a 51% stake in South Minerals Port Company SAOC, Oman. This acquisition is structured through a cash consideration and is contingent upon the fulfillment of specific conditions outlined in the agreement. Upon completion, the Port SPV will become a step-down subsidiary of JSW Infrastructure.
The financial terms of the acquisition involve JSW Overseas FZE subscribing to 51% of the total equity share capital of the Port SPV. The total project capital expenditure for developing the port is estimated at USD 419 Million. The acquisition does not fall under related party transactions, and there is no interest from the promoter group in the entity being acquired.
The operational scope of the project includes the development, ownership, maintenance, and operation of a port with a capacity of 27 Million Tonnes Per Annum (MTPA). The port will be located in Oman and is intended to support industrial mineral projects in the Dhofar Governorate. The Port SPV is yet to commence operations, and the development will be led by JSW Overseas FZE as the majority shareholder.
The timeline for the acquisition’s completion is set within 60 days from the fulfillment of all conditions precedent as per the definitive agreements. The construction phase of the port is expected to span 36 months, with commercial operations anticipated to begin in the first half of 2029.
The parties involved in this transaction include JSW Overseas FZE, which will hold a majority equity stake, and Minerals Development Oman (MDO), which will retain a 49% stake. A shareholders’ agreement has been executed to outline the governance and inter se rights and obligations of the shareholders.
The acquisition aligns with JSW Infrastructure’s strategic objectives to expand its global footprint in the port sector. The development of the port in Oman is significant due to the country’s strategic location on key global maritime routes. This project is expected to enhance trade connectivity and support mineral exports, aligning with Oman’s Vision 2040 for economic diversification.
JSW Infrastructure Limited is a key entity of the JSW Group and is recognized as India’s second-largest private commercial port operator. The company is focused on expanding its cargo handling capacity and enhancing its operational efficiency through strategic investments and developments in port infrastructure.