Adani Ports Expands Overseas Portfolio With 50 MTPA NQXT Deal
APSEZ initially acquired NQXT in 2011 for $2 billion, but the asset was transferred in 2013 to the Adani family for the same amount, allowing the company to focus on expanding its domestic operations
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private port operator, announced a $2.4 billion non-cash acquisition of a coal export terminal in Australia, aiming to bolster its presence in the Asia-Pacific region.
In a statement released Thursday, the company said its Board has approved the acquisition of Abbot Point Port Holdings Pte Ltd (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related party entity.
APPH owns the companies that operate the North Queensland Export Terminal (NQXT), a dedicated coal export facility with a nameplate capacity of 50 million tonnes per annum. Located at the Port of Abbot Point, about 25 km north of Bowen on Australia's east coast, the terminal plays a key role in the region's coal supply chain.
APSEZ's Expansion Strategy
APSEZ initially acquired NQXT in 2011 for $2 billion, but the asset was transferred in 2013 to the Adani family for the same amount, allowing the company to focus on expanding its domestic operations. Now, with a stronger balance sheet and a dominant market position in India, APSEZ is reacquiring the terminal as part of its broader global expansion strategy.
"The transaction will be completed on a non-cash basis. APSEZ will issue 14.38 crore new equity shares to CRPSHPL in exchange for the acquisition of 100 per cent interest in APPH. This is based on an enterprise value of NQXT of Australian Dollar 3.975 billion (about USD 2.4 billion)," the statement said.
"As part of the transaction, APSEZ will also assume other non-core assets and liabilities on APPH's balance sheet, which APSEZ will realise within a few months of the acquisition (zero net impact on the transaction valuation). APSEZ's leverage will remain at similar levels post the transaction," the statement added without sharing details of the liabilities.
Speaking about the acquisition, Ashwani Gupta, Whole-time Director & CEO, APSEZ, said, “NQXT’s acquisition is a pivotal step in our international strategy, opening new export markets and securing long-term contracts with valued users. Strategically located on the East-West trade corridor, NQXT is poised for robust growth as a high-performing asset, driven by increased capacity, upcoming contract renewals in the medium term, and the potential for green hydrogen exports in the long term. We are targeting EBITDA growing to A$ 400 million within 4 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.”
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