Adani Group acquires Australian port for $2 billion
03 May 2011
The Adani Group, as part of its overseas expansion strategy, today announced the acquisition of Abbot Point Port in Queensland, Australia, for $2 billion in an all-cash deal.
Adani Group flagship Mundra Port and Special Economic Zone Limited (MPSEZ), India's largest private port and special economic zone, will acquire the port on a 99-year lease. The deal will be funded by an acquisition debt and a small portion of equity from MPSEZ.
"This an all-cash deal duly funded by an acquisition debt. The assets base at Abbot Point allows us to have a take out finance at the assets level very soon," chief financial officer of MPSEZL B Ravi said.
Adani signed the contract with Queensland government officials in Brisbane, Australia this morning.
The takeover would be completed by 1 June. The port, which largely handles coal for exports, is owned by North Queensland Bulk Port Corporation Ltd and has two berths capable of handling cape-size vessels of over 200,000 tonnes. It has an installed capacity to handle 50 million tonnes annually, which Adani plans to raise to about 80 million tonnes over the next five years.
The state of Queensland had called for international competitive bidding for the port and MPSEZ emerged as the successful bidder. The agreement was signed in Brisbane on Tuesday.