Adani Group to acquire MBCPNL portfolio from Sadbhav Infra for Rs 1,680 crore

Ahmedabad (Gujarat) [India]: 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 per cent stake in MBCPNL at first, with an option to acquire an 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 multi-billion 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,” he added.
A release said that the acquisition is at an enterprise value of Rs 1,680 crore 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,” it said.
The release said that 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 check posts, MBCPNL has 18 operational, four 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 per cent p.a. and compounded every 3 years) with annual revenues expected to be in excess of Rs 340 crore The company has an estimated debt of Rs 1,130 crore as on September 30, 2021,” it said.
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.

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