Ahmedabad (Gujarat) [India], August 16 (ANI): Adani Logistics, a wholly owned subsidiary of Adani Ports and Special Economic Zone, said on Tuesday it has signed a definitive agreement to acquire ICD Tumb (Vapi) from Navkar Corporation for Rs 835 crore.
The deal comprises the acquisition of the operational ICD with a capacity to handle 0.5 million TEUs. The associated 129 acres of land provides an additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along these DFC routes, according to a statement released by Adani Ports and Special Economic Zone Ltd.
The Tumb ICD has a private freight terminal with four rail handling lines connected with Western DFC and has custom notified land & bonded warehouse facilities.
“Tumb is one of the largest ICDs in the country. Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira and Nhava Sheva,” said Karan Adani, CEO and whole-time director of Adani Ports and Special Economic Zone Ltd.
“In addition to cargo moving by rail being 5x greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that is expected to be 10 hours by rail versus 24 hours by road,” he said.
“This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door-to-door services to our customers. We are confident to grow the volumes at the ICD at high double digits as we build out a sustainable world-class multi-modal supply chain solution for the nation,” Karan Adani added in the statement.
The acquisition based on the land value and replacement cost of existing assets is priced at an enterprise value of Rs 835 crore, implying an EV/EBITDA multiple of 7.8x (based on FY23(E) EBITDA).
The deal is subject to customary regulatory and lender’s approvals and is expected to close in the second quarter of the current financial year, the company said in the statement. (ANI)