Adani Group to acquire MBCPNL portfolio from Sadbhav Infrastructure at an Enterprise Value of Rs.1,680 crore
Gateway connects Maharashtra with 6 neighbouring states, will cover over 20% of the commercial road traffic in India
- Adani Road Transport Ltd (ARTL) will acquire Maharashtra Border Check Post Network Ltd (MBCPNL). ARTL will acquire 49% at first, with the option to acquire additional stake, subject to approvals
- MBCPNL has 24 integrated checkposts with exclusive service fee collection rights from commercial vehicles for all key traffic routes in and out of Maharashtra
- MBCPNL is an important gateway connecting Maharashtra with 6 neighbouring states, which covers over 20% of the commercial road traffic in India
- MBCPNL has a strong business model underlined by long term concession, good traffic growth, inflation protection and robust margins
Ahmedabad, 16 August 2021: Adani Road Transport Ltd (ARTL), a wholly owned subsidiary of Adani Enterprises Ltd (AEL), has entered into a definitive agreement to acquire Maharashtra Border Check Post Network Ltd (MBCPNL), a subsidiary of Sadbhav Infrastructure Project Limited (SIPL).
ARTL, which develops, constructs, operates and manages roads and highway projects in India, will acquire a 49% stake in MBCPNL at first, with an option to acquire additional stake subject to regulatory approval.
“India has made tremendous progress in building its road network and interlinking the nation, an essential contributing factor in economic development,” said Krishna Prakash Maheshwari, CEO of ARTL. “As the nation’s largest infrastructure player, the Adani Group’s drive to create a world class portfolio of road networks is aligned with our mission to become India’s largest road infrastructure owner and operator. The multibillion dollar profile of road assets we are executing across India encompasses a variety of business models including Hybrid Annuity Mode (HAM), Toll-Operate-Transfer (TOT), Build-Operate-Transfer (BOT) and a service fee based network. This acquisition also strategically dovetails with the Adani Group’s formidable strength in logistics, a force-multiplying business adjacency for ARTL.”
The acquisition is at an enterprise value of Rs.1,680 Cr implying an attractive EBITDA multiple of ~7x. The deal is subject to customary regulatory and lender’s approvals and is expected to close in Q3 FY22.
About MBCPNL:
MBCPNL is an integrated portfolio of 24 border check posts with exclusive service fee collection rights from commercial vehicles for all traffic routes in and out of Maharashtra until at least 2033. Out of 24 checkposts, MBCPNL has 18 operational, 4 near-operational, one near completion and one under construction.
The Company has a strong business model underlined by long term concession, good traffic growth with inflation protection (5% p.a. and compounded every 3 years) with annual revenues expected to be in excess of Rs.340 Cr. The company has an estimated debt of Rs.1,130 Cr as on 30 September 2021.
About Adani Road Transport Limited (ARTL)
Adani Road Transport Ltd is a wholly owned subsidiary of Adani Enterprises Ltd, the flagship company of the diversified Adani Group. ARTL is a transport infrastructure developer involved in the construction, operation and maintenance of roads, highways and expressways. ARTL has concession agreements with the National Highway Authority of India (NHAI) structured on the Hybrid Annuity Mode (HAM), Build-Operate-Transfer (BOT) and Toll-Operate-Transfer (TOT) models. ARTL has already embarked upon a journey to implement an ESG framework and target to be among the largest green highways players in India.
