Port Arm of Infrastructure Conglomerate, Adani Enterprise acquired Abbot Point Coal Terminal

Mundra Port and SEZ Ltd (MPSEZL) announced on 3 May 2011 that it acquired Abbot Point Coal Terminal (APCT), an Australian port for $2 billion, or nearly Rs 9000 crore. MPSEZL is the port arm of infrastructure conglomerate and group flagship company Adani Enterprises Ltd (AEL). The sale-and-purchase agreement was signed in Brisbane, Australia, between MPSEZL Director Rajeeva Sinha and officials of the State of Queensland and it marked the largest acquisition by any Indian company abroad in this sector.

The deal size is one of the largest amongst all port acquisitions in the world and the acquisition made the Adani Group the largest Indian investor in Australia.

With the acquisition MPSEZL became one of the top port companies in the world with its asset base of $100 million increasing to over $3 billion. From a 2.5 MTPA (million tonnes per annum) port in 2001, MPSEZL's cargo handling capacity rose to over 200 MTPA.

The all-cash deal will be duly funded by an acquisition debt.

Abbot Point, which commenced operations in 1984, is a profit-making port with take-or-pay arrangement for its entire 50 MTPA capacity. It currently handles 20 MTPA of coal. The fully-mechanised port is equipped with high-end ship loaders, stacker re-claimers, conveyors and rail systems.