2 weeks Ago
Adani Ports and Special Economic Zone Ltd , owned by Indian billionaire Gautam Adani (net worth $63 billion, according to Forbes) has announced the acquisition of the the North Queensland Export Terminal (NQXT) in Australia, at a valuation of about $2.5 billion, from the Singapore-based Abbot Point Port Holdings. The acquisition is aimed at expanding global footprint, enhance cargo handling capacity, and achieving an annual operating profit of $255 million in the next four years, according to the CEO Ashwani Gupta.
The transaction, approved by the APSEZ Board of Directors, will be executed through a share swap arrangement with Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related party. Shares of Adani Ports (market cap of ₹2.73 lakh crore at close on April 17) gained over 5% in the week before the deal was announced.
Under the terms of the agreement, APSEZ will issue 14.38 crore new equity shares under the preferential allotment route to CRPSHPL, resulting in a net increase of 2.13% in the promoter group’s holding.
The acquisition aligns with APSEZ's ambitious goal to handle 1 billion metric tonnes (BMT) of cargo by 2030, with approximately 15% of this volume expected to come from international operations. Situated within the Port of Abbot Point, about 25 kilometers (15.5 miles) north of the town of Bowen on Queensland’s east coast, the deep-water coal terminal has a nameplate capacity of 50 million tonnes per year.
More than 30 million tonnes of thermal and metallurgical coal are exported annually through the terminal, which is owned by the Queensland government and leased by North Queensland Export Terminal Pty (part of the Adani Group operating under the Bravus banner in Australia) under a 99-year leasehold. NQXT, located in Queensland, Australia, is a dedicated export terminal with a current nameplate capacity of 50 million tonnes per annum (MTPA). Source: Company website The terminal operates under a long-term lease expiring in 2110, providing APSEZ with a significant long-term asset.
In FY25, NQXT handled 35 million tonnes of cargo and generated a total income of A$349 million ($222 million) and EBITDA of A$228 million ($145 million). APSEZ will also assume non-core assets and liabilities on APPH's balance sheet, valued at approximately US$2.2 billion, which it intends to realize within a few months of the acquisition.
Independent valuations of NQXT have been conducted, and the APSEZ Board has approved a share swap ratio of 153 equity shares of APSEZ for every 1,000 ordinary shares of APPH. The transaction is subject to customary approvals, including those from the minority shareholders, the Reserve Bank of India (RBI), and the Foreign Investment Review Board of Australia..
