Adani Ports buys Australian terminal for $2 billion

The Board of Directors of Adani Ports and Special Economic Zone (APSEZ) has approved the acquisition of Abbot Point Port Holdings (APPH), Singapore from Carmichael Rail and Port Singapore Holdings (CRPSHPL), Singapore.

CRPSHPL is a related party, says an official release from APSEZ. "APPH holds the entities which own and operate the North Queensland Export Terminal (NQXT), a dedicated export terminal with a current nameplate capacity of 50 million tonnes per annum (MTPA). The terminal is located at the Port of Abbot Point, approximately 25 km north of Bowen, in North Queensland on Australia’s east coast."

The transaction will be completed on a non-cash basis, the release added. "APSEZ will issue 14.38 crore equity shares to CRPSHPL in exchange for acquisition of 100 percent interest in APPH. This is based on an enterprise value of NQXT of A$3.975 billion ($2.5 billion). As part of the transaction, APSEZ will also assume other non-core assets and liabilities on APPH’s balance sheet, which APSEZ will realise within a few months of the acquisition (zero net impact on the transaction valuation)."

Ashwani Gupta, Whole-time Director & CEO, APSEZ says: "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. We are targeting EBITDA growing to A$400 million within four years. I am proud to welcome NQXT to our Growth with Goodness initiative as it exemplifies our commitment to high standards in environmental, social, and governance practices."

Cargo from NQXT is exported to 15 countries including 88 percent to Asia and 10 percent to Europe, the release added.