Adani acquires MBCPNL portfolio for ~1,680 cr

Adani Road Transport (ARTL), a wholly-owned subsidiary of Adani Enterprises (AEL), on Monday announced it would be acquiring Maharashtra Border Check Post Network (MBCPNL), a subsidiary of Sadbhav Infrastructure Project, at an enterprise value of ~1,680 crore. The deal is subject to customary regulatory and lender approvals and is expected to close in the third quarter of 2021-22. ARTL, which develops, constructs, operates, and manages roads and highway projects in India, will acquire 49 per cent stake in MBCPNL, with the option to acquire additional stake, the company said in its release. “This acquisition strategically dovetails into Adani Group’s formidable strength in logistics, a force-multiplying business adjacency for ARTL,” Krishna Prakash Maheshwari, chief executive officer of ARTL, was quoted as saying. Shares of AEL on Monday ended at ~1,430 apiece on the BSE, down 0.5 per cent from the previous close. MBCPNL has 24 integrated checkposts, with exclusive service fee collection rights from commercial vehicles for all key traffic routes in and out of Maharashtra. The entity connects Maharashtra with six neighbouring states, which covers over 20 per cent of commercial road traffic in India. MBCPNL has a strong business model, underlined by long-term concession, good traffic growth, inflation protection, and robust margins, said the company in its release.