Adani Ports Acquires 50-MTPA Capacity Terminal In Australia To Boost Global Presence
The transaction will fast track the company's journey to "handle 1 billion tonnes per annum by 2030", Adani Ports said.
Adani Ports and Special Economic Zone Ltd. on Thursday approved the acquisition of North Queensland Export Terminal, or NQXT, whose current capacity stands at 50 million tonnes per annum. The terminal serves as a key gateway for the resource-rich region of Queensland in Australia.
The company, in a release, said its board of directors has approved the acquisition of Singapore-based Abbot Point Port Holdings Pte. or APPH—which operates NQXT—from Carmichael Rail and Port Singapore Holdings Pte Ltd.
Adani Ports will acquire 100% interest in APPH, the release stated. It added that NQXT has an identified pathway to grow its capacity to 120 MTPA. The terminal's earnings before interest, taxes, depreciation and amortisation is expected to grow to A$400 million within four years, and its "lease has a long remaining life of 85 years until year 2110", it added.
The transaction will be completed on a non-cash basis, with Carmichael Rail and Port Singapore Holdings being a related party, the statement said.
The Adani Group company will issue 14.38 crore equity shares to CRPSHPL in exchange for 100% interest in APPH, based on an enterprise value of NQXT of A$3,975 million.
The transaction will fast track the company's journey to "handle 1 billion tonnes per annum by 2030", the release added.
While Adani Ports did not give a timeline for the acquisition to be completed, it expects to realise non-core assets and liabilities within a "few months" of the acquisition.
"NQXT’s acquisition is a pivotal step in our international strategy, opening new export markets and securing long-term contracts with valued users. Strategically located on the East-West trade corridor, NQXT is poised for robust growth as a high-performing asset, driven by increased capacity, upcoming contract renewals in the medium term, and the potential for green hydrogen exports in the long term,” Adani Ports Chief Executive Officer Ashwani Gupta said.
The company highlighted NQXT's excellent environmental, social, and governance track record. APSEZ pointed to NQXT's minimal environmental footprint, diverse workforce, strong safety standards, 50% operational spend with local and regional suppliers.
Shares of Adani Ports closed 2.20% higher at Rs 1,259.90 apiece on the BSE, compared to a 1.96% advance in the benchmark Sensex.
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