Adani Ports and Special Economic Zone (APSEZ) on Sunday said the company's composite scheme to acquire Sarguja Rail Corridor Pvt Ltd (SRCPL) has been approved by the National Company Law Tribunal (NCLT) and will be effective from the appointed date of April 1, 2021.
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APSEZ in a statement said the company will now consolidate all rail assets under a single business entity Adani Tracks Management Services Pvt Ltd.
"This consolidation allows APSEZ, which is targeting 2,000 km of track length by 2025, to participate in Indian Railways PPP (public-private partnership) projects without having to compete with similar businesses in the Adani portfolio, a position that is in full alignment with the equity interest of minority shareholders," it said.
The statement said that once consolidated, SRCPL will add Rs 450 crore or five per cent of APSEZ's total Ebitda (earnings before interest, tax, depreciation and amortisation).
Commenting on the development, APSEZ Chief Executive Officer and Whole-Time Director Karan Adani said that as per the National Rail Plan 2020, the Indian Railways will invest more than Rs 3 lakh crore over the next 10 years to construct new rail lines.
Therefore, this acquisition creates a significant business value for APSEZ as a transport utility, Adani added.
The statement said the acquisition being a related-party transaction, APSEZ adopted a fully transparent approach with minority shareholders and creditors for approval.
APSEZ, holding a rail portfolio of 620 km, had mooted a proposal to acquire 70 km of Sarguja Rail from another Adani group company.
APSEZ is part of the globally diversified Adani group.
