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Adani Ports and Special Economic Zone Ltd (APSEZ) has announced a USD 2.4 billion non-cash acquisition of the North Queensland Export Terminal (NQXT) in Australia from a group entity. This strategic move re-establishes Adani's control over the terminal it had divested over a decade ago. The acquisition, structured through a share-swap deal, aligns with APSEZ's global expansion plans and will strengthen its position across the Asia-Pacific corridor. With the terminal located in a high-growth trade zone, this marks APSEZ's fourth overseas acquisition in two years, expanding its global footprint to 19 ports and terminals.
Adani Ports and Special Economic Zone Ltd (APSEZ), India's largest private port operator, has agreed to reacquire the North Queensland Export Terminal (NQXT) in Australia through a USD 2.4 billion non-cash transaction. The acquisition, announced earlier this week, will be executed by issuing 14.38 crore new equity shares to Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related group entity. In exchange, APSEZ will gain complete ownership of Abbot Point Port Holdings Pte Ltd (APPH), the Singapore-based holding company of NQXT. Advertisement
Located approximately 25 km north of Bowen in North Queensland, the deepwater terminal boasts a nameplate capacity of 50 million tonnes per annum (MTPA) and serves as a dedicated coal export facility. NQXT is one of Australia's key infrastructure assets, with long-term 'take or pay' contracts in place and significant exposure to fast-growing Asian markets.
The transaction is valued based on an enterprise valuation of Australian Dollar 3.975 billion equivalent to around USD 2.4 billion. This valuation closely mirrors the 2013 figure, despite 12 years of capital investments, inflation, and growth in the asset's performance. According to company sources, the valuation also reflects slightly lower multiples compared to recent deals in the region.
As part of the deal, APSEZ will also absorb certain non-core assets and liabilities of APPH, which it expects to monetise within a few months of closure. The company confirmed that there would be no net impact on the overall valuation and that its leverage levels would remain stable post-acquisition.
This acquisition marks APSEZ's fourth international expansion in the last two years, with existing overseas assets in Israel, Tanzania, and Sri Lanka. With NQXT added, the company now operates 19 ports and terminals globally, including 15 in India.
The Port of Abbot Point, which hosts NQXT, has been designated as a strategic and priority development area by the Queensland Government. The terminal operates under a long-term lease from the government and is viewed as a critical node in Australia's export infrastructure.
Despite not being a part of China's Belt and Road Initiative, Australia has attracted around USD 9 billion in Chinese investments into its port sector, placing it second only to Tanzania. Given Australia's resource wealth and growing strategic ties with India, the reacquisition of NQXT places APSEZ in a favourable position to capitalise on regional demand and trade flows.
Meanwhile, the global ports industry continues to witness consolidation. US-based BlackRock recently entered the fray by pursuing Panama Ports for USD 23 billion while also acquiring Global Infrastructure Partners (GIP) for USD 12.5 billion. In a related move, DP World raised its stake in an Australian port in 2019 at an 18x EV/EBITDA multiple slightly above the near-17x multiple APSEZ is paying for NQXT.
Source: PTI
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