Adani Ports and SEZ Acquisition Update Note: Expanding global presence - maintain LONG - Equirus Securities
* Adani Ports and Special Economic Zone Ltd. (ADSEZ) has announced the acquisition of Abbot Point Port Holdings Pte. Ltd. (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Pte. Ltd. (CRPSHPL), a related party, through a non-cash share swap transaction.
* APPH owns the entities that operate the North Queensland Export Terminal (NQXT), a dedicated coal export facility with a current nameplate capacity of 50 million tonnes per annum (MTPA). The terminal is located at the Port of Abbot Point, ~25 km north of Bowen, on the east coast of North Queensland, Australia.
* This acquisition marks ADSEZ's strategic re-entry into the NQXT, a key asset that was previously owned by ADSEZ from 2011 to 2013. At that time, the asset was sold to the Adani Group as part of ADSEZ’s strategic shift towards focusing on domestic operations. With its Indian portfolio now stable and expanding, ADSEZ is resuming its international growth strategy, aiming to scale total cargo volumes to 1bn metric tonnes by 2030, including 150mn tonnes from international ports.
* The terminal's location near the Bowen and Galilee coal basins, along with its proximity to critical Asian trade routes, enhances its strategic relevance to ADSEZ's east-west corridor strategy. This acquisition significantly strengthens ADSEZ's international footprint, adding a high-performing, cash-generative asset with substantial scalability. The terminal is well-positioned to support ADSEZ’s growth ambitions, playing a vital role in achieving its target of 1bn metric tonnes of cargo by 2030.
* Currently, the terminal has a nameplate capacity of 50 MTPA, with 40 MTPA under contract. Post-acquisition, ADSEZ aims to increase contracted capacity, secure contract renewals with improved pricing, and leverage synergies across the group. These initiatives are expected to drive EBITDA growth, with projections for FY29 EBITDA reaching AUD 400mn (compared to an estimated AUD 228mn for FY25).
* The acquisition of APPH is being undertaken at an enterprise value of AUD 3.97bn, comprising an equity value of AUD 3.15bn and net debt of AUD 819mn. As consideration, ADSEZ will issue 143.8mn new equity shares to CRPSHPL through a preferential allotment, resulting in a 2.13% increase in the promoter group's shareholding. The transaction implies an EV/EBITDA multiple of ~17x based on FY25E EBITDA (Please refer exhibit – 4 for details on valuations), and ~10x based on the projected FY29E EBITDA of AUD 400mn.
* We have maintained our current estimates and will update our growth forecasts once the acquisition is completed. We expect ADSEZ to report a revenue, EBITDA, and PAT CAGR of 11%, 13%, and 14% over FY24-FY27E. We retain our LONG rating on the stock with a Mar’26 target price of ~Rs 1,440, based on a 15x FY27 EV/EBITDA multiple.
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