India's Adani Ports acquires Australian export terminal for over $2b

The board of directors of Indian integrated transport utility company Adani Ports and Special Economic Zone (APSEZ) has approved the acquisition of Abbot Point Port Holdings (APPH) from Carmichael Rail and Port Singapore Holdings (CRPSHPL).

APPH holds the entities that own and operate the North Queensland Export Terminal (NQXT), a dedicated export terminal with a current nameplate capacity of 50 million tonnes per annum.

The terminal is located at the Port of Abbot Point, approximately 25 kilometres north of Bowen, in North Queensland on Australia’s east coast.

The transaction will be completed on a non-cash basis. APSEZ will issue 143.8 million equity shares to CRPSHPL, in exchange for acquisition of 100 per cent interest in APPH. This is based on the enterprise value of NQXT of AU$3.975 billion (US$2.54 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). APSEZ’s leverage will remain at similar levels post the transaction.

NQXT is under a long-term lease from the Queensland Government and is a critical infrastructure asset supporting Australia’s significant resource industry.