Adani Ports buys Australian coal export terminal in $2.5-billion non-cash deal

Adani Ports and SEZ officially announced that it has acquired a coal export terminal in Australia in a $2.4-billion non-cash deal. The company has purchased Abbot Point Port Holdings (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Singapore (CRPSHPL), according to an official statement.

APPH owns the entities that own and operate the North Queensland Export Terminal, a dedicated export terminal with a current capacity of 50 million tonne per annum (MTPA). The terminal is located at Port of Abbot Point, nearly 25 km north of Bowen in north Queensland on the east coast of Australia.

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In 2011, APSEZ acquired the North Queensland Export Terminal (NQXT) at Abbott Point for $2 billion. In 2013, the Adani family purchased the asset from APSEZ for the same amount, along with the capital invested, allowing the company to focus on Indian operations.

“APSEZ will issue 143 million equity shares to CRPSHPL for acquiring 100% interest in APPH. This is based on an enterprise value of NQXT of A$3,975 million. 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,” the statement mentioned.

“NQXT’s acquisition is a pivotal step in our international strategy, opening new export markets and securing long-term contracts with valued users,” APSEZ Wholetime Director & CEO Ashwani Gupta said.

NQXT is poised for robust growth as a high-performing asset driven by increased capacity, forthcoming contract renewals in the medium term, and the potential for green hydrogen exports in the long term, Gupta said, adding that the company plans to grow EBITDA to 400 million Australian dollars within four years.

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