Adani Ports Acquires Australia’s NQXT for $2.5 Billion

21 Apr 2025 , 01:19 PM

Adani Ports and Special Economic Zone Ltd (APSEZ) has announced the purchase of North Queensland Export Terminal (NQXT) in Australia for an enterprise valuation of $2.5 billion. The purchase is from Abbot Point Port Holdings, a Singapore-based company, and is intended to enhance APSEZ’s global port network and reinforce its position in global logistics.

The Board of Directors of APSEZ has approved the transaction, which will be completed via a share swap deal with Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), who is a related party of Adani Group.

According to the agreement, APSEZ will issue 14.38 crore new equity shares under the preferential allotment path to CRPSHPL, increasing promoter group’s holding by 2.13%.

The deal is pending major regulatory approvals such as those from minority shareholders, the Reserve Bank of India (RBI), and Australia’s Foreign Investment Review Board. Situated in the Port of Abbot Point in Queensland, Australia, the NQXT is a deep-water coal terminal with a nameplate capacity of 50 million tonnes per annum (MTPA).

During FY25, the terminal processed 35 million tonnes of cargo, producing a revenue of A$349 million ($222 million) and an EBITDA of A$228 million ($145 million).

The port ships more than 30 million tonnes of metallurgical and thermal coal every year and is on a 99-year lease that expires in 2110. It is a long-term strategic asset for the Adani Group’s international operations.

In this deal, APSEZ aims to earn a yearly operating profit of $255 million from NQXT in the next four years, according to CEO Ashwani Gupta. APSEZ will also take over non-core assets and liabilities of around $2.2 billion from the balance sheet of APPH with the aim of generating value from the assets in the near future.

The firm has received independent valuation reports and approved a share swap ratio of 153 equity shares of APSEZ for each 1,000 ordinary shares of APPH. The acquisition is in line with the vision of APSEZ to service 1 billion metric tonnes (BMT) of cargo by 2030 of which 15% will be contributed by international operations.