A day after the announcement of the Adani Ports and Special Economic Zone Limited (APSEZ) that the Switzerland-based Mediterranean Shipping Company (MSC) Group will acquire 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire and operating company for the Vizhinjam International Seaport, the Kerala government on Wednesday made it clear that the State government approval was required for the share transfer in the MSC-Adani agreement.

Replying to a question in the Question Hour in the Assembly, Chief Minister V.D. Satheesan informed the House that Adani Ports has not obtained the approval for the transfer of the stakes yet. In some cases, the Central government’s approval is necessary for the share transfer, he said, adding that he came to know about the share transfer through media reports.

According to the announcement, the MSC will acquire a 49% stake in the Vizhinjam port company for $1.397 billion (around ₹13,220 crore). The MSC will make the investment through its container terminal operating and investing arm, TiL. The APSEZ and TiL have entered into an agreement and the transaction is subject to customary approvals, including regulatory ones, according to APSEZ.