Adani Road Transport Ltd. has acquired Maharashtra Border Check Post Network Ltd., which has exclusive fee-collection rights from commercial vehicles at 24 entry points to India's richest state.
ARTL, a wholly-owned subsidiary of Adani Enterprises Ltd., acquired MBCPNL from Sadbhav Infrastructure Project Ltd. at an enterprise value of Rs.1,680 crore, the company said in a statement. That implies an Ebitda multiple of approximately 7 times, it said.
MBCPNL, an SPV promoted by a consortium led by Sadbhav Engineering Ltd. (parent of SIPL), was awarded the concession by the Maharashtra government to build, operate and transfer 24 modernised and computerised integrated border check posts, according to information on the company website.
Of these, 18 are operational, four near-operational, one near completion and one under construction, the company statement said. "MBCPNL is an important gateway connecting Maharashtra with six neighbouring states, which covers over 20% of the commercial road traffic in India."
The concessions are long term, till at least 2033, and have inflation protection (5% per annum and compounded every three years).
ARTL will begin by acquiring 49%, with the option to acquire additional stake, subject to approvals.
As the nation's largest infrastructure player, the Adani Group's drive to "create a world-class portfolio of road networks is aligned with our mission to become India's largest road infrastructure owner and operator", ARTL Chief Executive Krishna Prakash Maheshwari was quoted as saying in the statement. "This acquisition also strategically dovetails with the Adani Group's formidable strength in logistics, a force-multiplying business adjacency for ARTL."
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