Adani Ports Secures Australian Export Terminal in Landmark Deal
Newzdaddy Business Updates
Synopsis of the Article:
APSEZ acquires 50 MTPA capacity NQXT Australia, accelerating path to 1 billion tonnes p.a. by 2030
- NQXT is a highly efficient and cash-generating asset that will consolidate APSEZ’s presence along the East-West trade corridor, in line with its global expansion strategy
- North Queensland Export Terminal (NQXT) is a critical export gateway for producers in resource-rich Queensland, Australia, and has current capacity of 50 MTPA.
- NQXT has an identified pathway and capability to grow throughput up to 120 MTPA to meet the global demand for Queensland’s high-quality resources, including for potential green hydrogen exports.
- NQXT handled its all-time high cargo at 35MMT in FY25.
- APSEZ will benefit from an incremental EBITDA margin above 90%.
- NQXT EBITDA to grow to A$ 400 million within 4 years.
- NQXT lease has a long remaining life of 85 years until the year 2110.
- As part of a non-cash transaction, APSEZ will issue 14.38 crore equity shares under preferential allotment route to the seller, which will result in a net increase of 2.13% in promoter group holding.
- The transaction will further enhance APSEZ’s global transport and logistics footprint and fast track it’s journey to handle 1 billion tonnes per annum by 2030.
- NQXT comes with an excellent ESG track record with minimal environmental footprint, diverse workforce, strong safety standards, 50% operational spend with local and regional suppliers.
The Board of Directors of Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest integrated Transport Utility company, has approved the acquisition of Abbot Point Port Holdings Pte Ltd (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Pte Ltd, Singapore (CRPSHPL). CRPSHPL is a related party.
APPH holds the entities that own and operate the North Queensland Export Terminal, a dedicated export terminal with a current nameplate capacity of 50 million tonnes per annum (MTPA). The terminal is located at the Port of Abbot Point, approximately 25 km north of Bowen, in North Queensland on Australia’s east coast.
The transaction will be completed on a non-cash basis. APSEZ will issue 14.38 crore equity shares to CRPSHPL in exchange for the acquisition of 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 realize 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.
Speaking on the acquisition, Mr. 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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