Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest integrated transport utility, has approved the acquisition of Abbot Point Port Holdings Pte Ltd (APPH), based in Singapore. The acquisition is from Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related party entity. APPH owns and operates the North Queensland Export Terminal (NQXT), located at the Port of Abbot Point, 25 km north of Bowen in North Queensland, Australia.
Transaction Structure
The deal will be completed on a non-cash basis. APSEZ will issue 14.38 crore equity shares to CRPSHPL in exchange for a 100% stake in APPH. The transaction is based on an enterprise value of AUD 3,975 million for NQXT. APSEZ will also assume certain non-core assets and liabilities, expected to have a neutral impact on valuation. The company’s leverage is projected to remain at similar levels post-acquisition.
Strategic Value of NQXT
NQXT is a deep-water, multi-user export terminal with a current nameplate capacity of 50 million tonnes per annum (MTPA). It operates under a long-term lease from the Queensland Government and is part of a declared Strategic Port and Priority Port Development Area. The terminal plays a vital role in Australia’s resource exports and has long-term “take or pay” agreements with eight major customers.
In FY25, NQXT achieved record cargo volume of 35 MTPA against a contracted capacity of 40 MTPA. Cargo was exported to 15 countries, with 88% destined for Asia. The terminal generated revenue of AUD 349 million and EBITDA of AUD 228 million, with EBITDA margins exceeding 90% (excluding pass-through operational costs).
CEO’s Statement
Ashwani Gupta, Whole-time Director & CEO of APSEZ, described the acquisition as a key step in the company’s international expansion strategy. He emphasized the terminal’s location on the East-West trade corridor, strong customer base, and potential for future green hydrogen exports. APSEZ aims to grow NQXT’s EBITDA to AUD 400 million within four years.
Rationale Behind the Acquisition
- NQXT is a fully operational terminal with over four decades of experience.
- It offers strategic access to resource producers in the Bowen and Galilee basins.
- APSEZ expects growth in contracted capacity and enhanced synergies under its global logistics platform.
- The asset supports the Queensland Government’s green energy strategy, especially around green hydrogen exports.
Sustainability and ESG Performance
NQXT has demonstrated strong ESG performance. It recorded zero reportable environmental incidents and fatalities in FY25, with a low lost time injury frequency rate of 1.7. The terminal contributes significantly to local communities, with half of its FY25 operational spend directed to local suppliers. Since 2017, AUD 2.4 million has been spent on community initiatives in Bowen and Collinsville. Additionally, over 5% of its workforce identifies as Aboriginal and Torres Strait Islander, exceeding national averages.
Advisors and Approvals
- Legal Counsel: Cyril Amarchand Mangaldas (India), Ashurst (International)
- Valuation and Financial Review: GT Valuation Advisors Pvt. Ltd, Grant Thornton Bharat LLP
- Independent Valuation for Regulatory Compliance: SBI Capital Markets Ltd
The transaction is pending approvals from the Reserve Bank of India (RBI), shareholders, and Australia’s Foreign Investment Review Board. It is expected to close within two quarters.
