Tuesday, 19 October 2021

Adani obtains a 49 percent stake in MBCPNL for 1680 Rs crore

Adani obtains a 49 percent stake in MBCPNL for 1680 Rs crore

ARTL (Adani Road Transport Ltd), a wholly-owned subsidiary company of AEL (Adani Enterprises Ltd) on 16 August, announced

It has entered into a final agreement to acquire a 49% stake of Maharashtra Border Check Post Network Ltd (MBCPNL) at an Enterprise Value of Rs 1,680 crore.

Apart from the above acquisition, ARTL can acquire an additional stake of MBCPNL, a subsidiary of Sadbhav Infrastructure Project Limited (SIPL), subject to regulatory approval.

MBCPNL is a critical connecting gateway in Maharashtra with six neighboring states, covering over 20 percent of the commercial road traffic in India.

ARTL CEO Krishna Prakash Maheshwari said on the acquisition of MBCPNL's stake.

"India has made tremendous progress in building its road network and interlinking the nation, an essential contributing factor in economic development," 

Adani obtain 49 percent stake in MBCPNL for 1680 crore 1getty image

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"As the nation's most significant infrastructure competitor player, the Adani Group's operate to create a world-class road portfolio of road networks is aligned with our mission to become India's largest road infrastructure operator and owner.

The multi-billion-dollar profile of road assets we are executing across India encompasses a variety of business models.

These include Hybrid Annuity Mode (HAM), Toll-Operate-Transfer(TOT), Build-Operate-Transfer (BOT), and a service fee-based network," he added.

The subsequent acquisition strategically dovetails with the Adani Group's formidable strength in logistics, which is a force-multiplying business adjacency for ARTL. The purchase also implies an attractive EBITDA multiple of ~7x and is expected to close in Q3 FY22.

MBCPNL is a critical gateway connecting Maharashtra with six neighboring states, which covers over 20 percent of the commercial road traffic in India. The firm has 24 integrated check-posts with exclusive service fee collection rights from commercial vehicles for all main traffic routes in and out of Maharashtra. Out of 24 checkpoints, MBCPNL has 18 operational, four near-operational, one near completion, and one under construction.

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