New Delhi:
India’s largest private port operator Adani Ports and SEZ Limited on Thursday announced a $ 2.4 billion acquisition of $ 2.4 billion of coal export terminals in Australia from a group company to strengthen their presence in the Asia-Pacific region.
The Board of APSEZ approved the acquisition of Carmail Rail and Port Singapore Holdings PTE LTD, Singapore (CRPSHPL) Abbot Point Holdings PTE LTD (APPH), Singapore. CRPSHPL is a related party.
The APPH owns the entities owned and operated by the North Queensland export terminal, which is a dedicated export terminal with the current nameplate capacity of 50 million tonnes per year (MTPA). The terminal is located on the eastern coast of Australia, about 25 km north of Bowen in Northern Queensland at the port of the Aboot Point.
APSEZ originally in 2011, acquired the North Queensland Export Terminal (NQXT) in Abbott Point. Two years later, in 2013, the Adani family bought assets from APSEZ for the same amount, as well as investing capital, allowing the company to focus on expanding its domestic operations.
Now, with a strong balance sheet and a prominent place in India, Apsez is regaining the terminal as part of its global development strategy.
“Transactions will be completed on a non-cost basis. APSEZ will issue 14.38 crore new equity shares to CRPSHPL instead of acquiring 100 percent interest in APSEZ APH. It is based on the enterprise value of NQXT of NQXT of 3.975 billion (about $ 2.4 billion), Australian dollars.”
The acquisition is valuable at almost equal levels for transfer in 2013. This assessment is despite the last 12 years of capital investment, development and inflation and a little concessional multiples for recent deals in the region.
“As part of the transaction, the balance sheet of the Apsez APP will also receive other non-core assets and liabilities, which APSEZ will feel within a few months of acquisition (zero net effects on transaction assessment). The APSEZ’s leverage will remain at the same levels.
The company said that the acquisition has intensified the target of doubling the Apsez’s target of doubling its volume to 1 billion tonnes per year, it is likely to quadruple its volume – from 35 million tonnes to 120 million tonnes in FY25, from Australia, the company said by the company, including possible exports of green hydrogen from Australia.
This is the fourth foreign acquisition for India’s largest port developer in the last two years. With this, the company will have a portfolio of 19 ports and terminals – 15 domestic and 4 foreigners. A port in Israel, Tanzania and Sri Lanka have three other international places where Apsez operates.
NQXT has a contract with Bravus Mining and Resources (East Adani Mining, completely under the ownership of Adani Enterprises) for the export of 9.3 million tonnes of thermal coal from Adani Carmicol Coal Mine.
This move of Apsez comes at a time when the global port industry is gaining strong prominence among growing trade tensions, especially between the US and China.
American investment giant Blackrock is allegedly demanding the Hong Kong -based group to acquire the Panama ports for $ 23 billion, but has faced resistance from Chinese stakeholders.
In January last year, Blackrock also acquired the Global Infrastructure Partners (GIP), which stakes in ports globally in a $ 12.5 billion deal.
In 2019, DP World raised its stake in its Australian port to increase the 18x EV/EBITDA evaluation several times. APSEZ is acquiring Nqxt near 17x.
“For Apsez, India will remain a region of focus. The company is very selective in its foreign plans and will participate only in places where the Indian trade routes will play an important role. The acquisition will bring the acquisition to all group ports below one roof, allowing high coordination,” a senior company official explained the approach to the expansion of the overseas.
The western region, due to no direct contact for the NQXT, has a 90 percent exposure for the rapidly growing Asian market in the deep-warder terminal, a senior source of the company said, a senior source of the company, a senior source of accounting for about half versions with China and India.
Located in Queensland, it is near the Deepwater Port Bowen and Galilee Mining Basin and the high quality customer base, the company said.
On FY25 numbers, the acquisition will add 8 percent to the versions of Apsez and 6.4 percent in its ebitda.
Even though not a part of China’s Belt and Road Initiative, Australia, one of the most resource-rich countries, has attracted about $ 9 billion in Chinese investment in its fields, which is the second only after Tanzania. When it comes to natural resources, Australia remains an important trade and strategic partner for India.
Speaking on the acquisition, Ashwani Gupta, CEO of Epses, said, “Acquisition of NQXT is an important step in our international strategy, opening new export markets and securing long-term contracts with valuable users. Strategically located on pre-west trade corridors, provisions for provisions as a high-distraction complex as a high-distinct complex have increased as a high-west business corridor. Australian dollars are targeting EBITDA to grow up to 400 million within years.
The Port of Aboat Point (within which NQxt is located) has been declared as a strategic port and a priority port development area by the Government of Queensland.
NQxt is under a long -term lease from the Government of Queensland and is an important infrastructure asset supporting Australia’s important resource industry.
It currently provides strategic access to eight major customers for long -term ‘tech or pay’ contracts. During FY25, NQxt had a contract capacity of 40 million tonnes and handled the all -time high cargo volume of 35 million tonnes. Cargo was exported to 15 countries from NQxt, which included 88 percent of Asia and 10 percent to Europe.
NQXT posted Australian dollar at 349 million in revenue and 228 million in Australian Dollar Ebitda in FY25.
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