Adani Ports buys Australian export terminal in $2.4 billion deal: Details

A company related to Adani Group Chairman Gautam Adani is set to transfer the ownership of an Australian port terminal to Adani Ports & Special Economic Zone (APSEZ) in a deal worth $2.4 billion, the firm said on Thursday.

The Adani port deal comes at a time when India's largest operator seeks to expand its global footprint.

The Board of APSEZ “approved the acquisition of Abbot Point Port Holdings Pte Ltd (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Pte Ltd, Singapore (CRPSHPL)”, the company said in a statement.

CRPSHPL is a related party.

Adani Ports & Special Economic Zone Ltd will acquire the North Queensland Export Terminal Pty Ltd (NQXT) by issuing preferential shares to an entity that is controlled by the Adani family, according to a Bloomberg report.

“The transaction will be completed on a non-cash basis. APSEZ will issue 14.38 crore new equity shares to CRPSHPL in exchange for the acquisition of 100 per cent interest in APPH. This is based on an enterprise value of NQXT of AUD $3.975 billion (about $2.4 billion),” the statement said.

Why is Gautam Adani selling the port?

North Queensland Export Terminal, which is a deep-water coal export terminal, was purchased by Adani Ports in 2011. In 2013, Adani Ports sold the terminal to the Adani family in a $2 billion deal, a Bloomberg report said.

However, Adani Ports over the last two years has been seeking to be a dominant force in maritime routes where there is an expectation of Indian trade increasing.

The latest purchase would be the fourth international port asset for the Adani group after Haifa in Israel, Colombo in Sri Lanka and the Port of Dar es Salaam in Tanzania.

“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). APSEZ's leverage will remain at similar levels post the transaction,” the statement said without giving details of the liabilities.

The acquisition will accelerate the APSEZ's target of doubling its volumes to 1 billion tonnes per annum by FY30, with a potential to near quadruple its volume - from 35 million tonnes in FY25 to 120 million tonnes, including potential exports of green hydrogen from Australia, the company said.