TIDMERE
RNS Number : 3054O
Eredene Capital PLC
28 June 2010
Date: 28 June 2010
On behalf of: Eredene Capital PLC ("Eredene" or the "Eredene
Group")
Embargoed until: 0700hrs
Eredene Capital PLC
· Eredene wins bid with a consortium to build and operate the GBP207m
Container Terminal at Ennore Port in Tamil Nadu, southern India
· Ennore Port is one of the 13 Major Ports in India
· Eredene's consortium partners are Spanish port operators Grup Marítim TCB
SL, international construction group Obrascón Huarte Lain SA, and India's Lanco
Infratech Ltd
Eredene Capital PLC (AIM: ERE), the AIM quoted investor in Indian
infrastructure, announces today that it has won a bid in a consortium to build
and operate the Container Terminal at Ennore Port in the southern Indian State
of Tamil Nadu. The estimated project cost of the Ennore Container Terminal is
GBP207m.
Eredene bid for the project in a consortium headed by Spain's leading port
operator, Barcelona-based Grup Marítim TCB SL (www.gruptcb.com), together with
international construction group Obrascón Huarte Lain SA (www.ohl.es), and one
of India's leading construction, power and engineering conglomerates, Lanco
Infratech Ltd (www.lancogroup.com).
The consortium was given a Letter of Award in relation to the project on 26 June
2010 by Ennore Port Ltd (www.ennoreport.gov.in). Six contenders had been
shortlisted.
Eredene has a 22 per cent stake in the consortium. Eredene's equity commitment
to this project is up to approximately GBP23m, spread over a 48 month period.
This commitment will initially be funded through existing cash reserves and then
through the raising of additional capital into Eredene.
The Eredene Group's project team in India has significant experience in Indian
ports. The team is headed by Nikhil Naik, who was formerly Regional Director of
P&O India and CEO of Mundra International Container Terminal. Mr Naik has a
successful track record in sourcing and managing large port-based infrastructure
projects.
Grup Marítim TCB SL currently operates 13 terminals in six countries with a
total installed capacity of 4.5 million TEUs (20-foot equivalent units).
Work on the new Ennore Container Terminal is scheduled to take 33 months and it
is expected to be operational by the end of 2013. The concession will be awarded
on a build, operate and transfer (BOT) basis for a period of 30 years. The
terminal will have a quay length of 1,000 metres and an estimated throughput of
1.5 million TEUs annually. The terminal will provide 15-metre water depth at the
berths and will be able to handle three container vessels of up to 8,000 TEUs
simultaneously.
Alastair King, founder and CEO of Eredene Capital PLC, commented:
"This is a major milestone for Eredene. The Ennore Container Terminal is a
world class project, with an excellent growing hinterland and good existing
transport connectivity.
"This project builds on our expertise in ports and port infrastructure and on
our commitment to the dynamic Indian economy.
"We look forward to working with our partners and contributing solidly to the
designing, constructing, financing and operating of the new Ennore Container
Terminal."
Enquiries:
+-------------------------------+-------------------------------+
| Eredene Capital PLC | Tel: +44 20 7448 8000 |
+-------------------------------+-------------------------------+
| Alastair King (Founder and | www.eredene.com |
| CEO) | |
+-------------------------------+-------------------------------+
| Ranveer Sharma (Principal) | |
| | |
+-------------------------------+-------------------------------+
| Numis Securities Limited | Tel: + 44 20 7260 1000 |
+-------------------------------+-------------------------------+
| Heraclis Economides | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Redleaf Communications | Tel: + 44 20 7566 6708 |
+-------------------------------+-------------------------------+
| Adam Leviton/Henry Columbine | eredene@redleafpr.com |
+-------------------------------+-------------------------------+
Notes to Editors
About Ennore Port
· Ennore Port was commissioned in 2001. It is one of the 13 Major Ports in
India. Ennore Port has an operational coal berth and an iron ore berth under
construction. It has existing breakwaters and dredged navigation channels.
· Ennore Port is located 24 km (15 miles) north of Chennai (formerly Madras)
and was originally conceived as a satellite to Chennai port to handle coal and
other bulk cargo. It is now gearing up to become a major competitor to Chennai
port, which is in the heart of Chennai city. Ennore Port has better connectivity
and is linked to the National Highways without having to enter the populated
city area. The hinterland of both ports is a major industrial hub and a centre
of India's fast growing automotive manufacturing industry.
· Chennai is India's fifth largest city with a population (including its
metropolitan area) of c. 7.4m people.
About Eredene Capital PLC
· Eredene Capital PLC is a UK-based company which invests in infrastructure
projects in India. It focuses primarily on ports, port services, logistics and
distribution warehouses.
· The Eredene Group has now made investments in ten projects in India -
eight in ports/port services, logistics and distribution warehouses, one in IT
offices and one in a large scale, affordable housing development. Three of its
investments are revenue generating (one of which is profitable and dividend
paying) and a fourth is taking sales deposits.
· Separate to today's announcement, in 2008 the Eredene Group committed up
to GBP5 million for a 90% stake to develop and operate a Container Freight
Station ("CFS") close to Ennore Port. The Sattva Conware CFS is currently under
development. It is intended that this CFS will handle container throughput from
Ennore Container Terminal, when constructed. This CFS is a second joint venture
with the Sattva Business Group with which Eredene has already invested in a
profitable and dividend paying CFS at Vichoor, which serves the port of Chennai.
· Eredene has a strong shareholder register which includes Caledonia
Investments, Ruffer LLP, Henderson Global Investors and Sofina SA.
· Eredene has an investment advisory team in Mumbai with specialist
experience in Indian ports and related infrastructure. The team is led by Mr
Nikhil Naik, previously Regional Director of P&O in India and CEO ofMundra
International Container Terminal.
· Eredene is also supported by special advisors including Mr DT Joseph,
formerly the most senior Indian Civil Servant in the relevant shipping and
transport ministry, and Mr Sarvjit Singh, former Chairman of largest Pan-Indian
warehousing company.
· Eredene trades on the Alternative Investment Market (AIM) of the London
Stock Exchange.
www.eredene.com
This information is provided by RNS
The company news service from the London Stock Exchange
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