Adani Enterprises to acquire Sadbhav Infra’s Maharashtra check post arm

Adani Enterprises has entered into a definitive agreement to acquire from Sadbhav Infrastructure Project its network of border checkposts across Maharashtra, housed under Maharashtra Border Check Post Network (MBCPNL) for an enterprise value of Rs 1,680 crore, the Gautam Adani-led company said late Monday.
The Adani group, through its arm Adani Road Transport, will initially acquire a 49% stake in MBCPNL, with an option to acquire additional stake in the company subject to regulatory approval.

Krishna Prakash Maheshwari, chief executive officer, Adani Road Transport, said, “The multibillion dollar profile of road assets we are executing across India encompasses a variety of business models including hybrid annuity, toll-operate-transfer, build-operate-transfer 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.”

The deal at the enterprise value of Rs 1,680 cr is seven times its current earnings before interest, taxes, depreciation, and amortization (EBIDTA), Adani said.

“MBCPNL has 24 integrated checkposts with exclusive service fee collection rights from commercial vehicles for all key traffic routes in and out of Maharashtra. “MBCPNL is an important gateway connecting Maharashtra with 6 neighbouring states, which covers over 20% of the commercial road traffic in India,” the company said.