Thiruvananthapuram | Kerala Chief Minister V D Satheesan on Thursday expressed his administration's displeasure to APSEZ over its announcement of transferring 49 per cent shares in Vizhinjam port to Switzerland-based shipping company MSC without informing the government.

A statement issued by his office said that Satheesan conveyed the government's displeasure to Adani Ports and Special Economic Zone (APSEZ), which on Tuesday had announced that the Mediterranean Shipping Company (MSC), the world's largest shipping and logistics group, would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) for about USD 1.4 billion.

The statement further said that the share structure of AVPPL, the concessionaire of Vizhinjam port, can only be changed with the state government's permission.

It also said that the government's stand going forward will be decided after examining the applicable conditions, restrictions and instructions in the concession agreement.

"The government's goal is to fully protect the interests of the state and realise the full potential of the Vizhinjam Port as a globally competitive transhipment hub," the statement said.

The statement comes hours after Leader of Opposition in the state assembly Pinarayi Vijayan questioned how the Adani group could "dare" to enter into an agreement to sell its 49 per cent stake in the Vizhinjam international seaport without the mandatory prior permission of the state government.

"How could they dare to do that? The chief minister needs to clarify this as he also holds the charge of the Ports Department".

"Initiation of the share transfer is illegal and in violation of the agreement with the government. The CM also needs to clarify what steps the government proposes to take in light of this move by Adani," the former chief minister contended during a press conference here in the morning.

The share transfer issue was raised in the Kerala Assembly a day ago, and Satheesan had claimed that Adani Ports has not communicated anything to the state government regarding the matter.

APSEZ has described the USD 2.85-billion valuation as the largest foreign private investment in Indian port infrastructure and said the partnership would strengthen Vizhinjam's position as a major transhipment hub in the Indian Ocean.