“This consolidation allows APSEZ, which is aiming for 2,000 km of track length by 2025, to participate in Indian Railways’ PPP (public-private partnership) projects without having to compete with similar companies in the portfolio. Adani, a position that is in full alignment with minority shareholder participation,” he said.
The statement said that once consolidated, SRCPL will add Rs 450 crore or 5% of APSEZ’s total Ebitda (earnings before interest, tax, depreciation and amortization).
Commenting on the development, APSEZ CEO and full-time director Karan Adani said that in line with the National Rail Plan 2020, Indian Railways will invest more than Rs 3 lakh crore over the next 10 years to construct new new railway lines.
Therefore, this acquisition creates significant business value for APSEZ as a transportation utility, Adani added.
The press release indicates that the acquisition is a transaction between related parties, APSEZ has adopted a completely transparent approach with minority shareholders and creditors for approval.
APSEZ, holding a railway portfolio of 620 km, had issued a proposal to acquire 70 km of Sarguja Rail from another Adani group company.
APSEZ is part of the globally diversified Adani Group.