Adani Group owned Mundra Port and Special Economic Zone (MPSEZ) on Wednesday announced it had completed the acquisition process of Abbot Point Port in Australia for AUD $1.8 billion (Rs. 9,000 crore).
Subsequently, the name of the company has been changed to Adani Abbot Point Terminal Pvt Ltd, according to an official statement issued here. The management team from Mundra is in place and has taken over ownership and oversight of the operations of APCT effective from June 1. The company's nominated directors have come on the board of the target company, it said.
Mundra Port had announced on May 3 that it had signed a sale and purchase agreement in respect of the Abbot Point X 50 Coal Terminal (APCT) following the international competitive bidding process conducted by the state of Queensland in Australia.
Queensland is selling the coal export terminal as part of a 15 billion Australian dollars asset sale programme. It will use the money for reconstruction following the devastation caused by floods and a cyclone in the region.
The statement said the port has two mechanised berths. MPSEZ aims to build another two in the next five years. It has a capacity of 50 million tonnes. It is using 20 million tonnes at present. Adani plans to fund the deal through debt and the sale of some equity in MPSEZ.
The company expects revenues from port operations to nearly triple to 305 million Australian dollars (Rs. 1,470 crore) by 2016 from 110 million Australian dollars (Rs. 530 crore) in 2011.
Gautam S. Adani, chairman and managing director said the entire deal from selection of bidder to completion was completed in just 28 days, a record of sorts.
B. Ravi, Chief Financial Officer informed that the all cash deal was funded by State Bank of India and Standard Chartered Bank. He informed that the full amount of AUD $1.829 billion was remitted to the
Queensland Government on Wednesday.
