Adani Logistics enters ~Rs835 crore deal to acquire ICD Tumb from Navkar Corporation

16 Aug 2022 , 10:28 AM

In its filing with the exchanges, Adani Ports & SEZ Limited informed that Adani Logistics Limited (ALL), a wholly-owned subsidiary of the Company has considered and approved the acquisition of title, rights, interest, ownership, and the operations of business undertaking of Navkar Corporation Limited situated at Tumb Village, Dist Valsad, Gujarat as a going concern, on an “as is where is” basis.

The acquisition is priced at Rs835 crore based on the land value and replacement cost of existing assets, implying an EV/EBITDA multiple of 7.8x (based on FY23(E) EBITDA).

The transaction includes the acquisition of an operational Inland Container Depot (ICD) with a capacity of 0.5 million TEUs. As additional industrial corridors and logistic parks are built along these DFC routes, the associated 129 acres of land will provide an additional expansion path to increase capacity and cargo in the near future.

Tumb ICD has a private freight terminal with four rail handling lines linked to Western DFC, as well as customs notified land and bonded warehouse facilities.

The said acquisition falls in line with Adani Logistics’ strategy to build integrated transport utility and pan India logistics infrastructure and Tumb adds to the existing seven multimodal logistics parks in the company’s portfolio.

The Parties will be required to close the transaction on or before December 31, 2022, subject to the satisfactory completion of the condition precedent by the parties, as set out in the Transaction Documents.

At around 10.33 AM, Navkar Corporation was trading at Rs74.45 down by Rs10.35 or 12.21% from its previous closing of Rs84.80 on the BSE. While, Adani Ports & SEZ was trading at Rs812.10 up by Rs23.9 or 3.03% from its previous closing of Rs788.20.