Adani Group's ₹26,000 crore Evos deal: What the Dutch firm's acquisition means for its global ports business
Billionaire Gautam Adani's group plans to invest around ₹13,000 crore in equity towards its acquisition of Dutch liquid storage company Evos BV, with the remaining amount expected to be raised through loans, according to a Bloomberg report.
The €2.56 billion (around ₹26,000 crore) deal will give the Adani Group access to one of Europe's largest independent liquid storage businesses and expand its presence in overseas markets.
The group is also looking to refinance around €1.3 billion of Evos' existing debt as part of the transaction.
The acquisition is being financed through a combination of equity and debt. Adani Group plans to contribute up to $1.45 billion (around ₹13,000 crore) in equity, while the remaining amount will be raised through a syndicated loan involving multiple lenders.
Evos BV is a Netherlands-based company that operates liquid storage facilities. It is Europe's second-largest independent liquid storage operator, according to Bloomberg.
Companies in this business provide storage infrastructure for liquid commodities, making them an important part of the global supply chain and energy trade.
For Adani, the acquisition means adding a major overseas liquid storage business to its existing ports and logistics operations. It will also expand the group's presence in developed markets, particularly Europe.
The acquisition is in line with Adani Ports and Special Economic Zone Ltd's strategy to expand its geographical footprint. S&P Global Ratings has said the company should be able to maintain its financial position and credit quality after the acquisition, adding that Evos would give it access to developed markets with stable operating environments.
The acquisition will strengthen Adani's presence in the global ports and logistics business by adding liquid storage infrastructure in Europe.
Adani Ports, which has been expanding its operations beyond India, will get an opportunity to increase its presence in developed markets through Evos, the Bloomberg report mentioned. The acquisition will also broaden its business beyond the handling of cargo at ports to include liquid storage operations.
For the Adani Group, the transaction is part of a larger overseas expansion plan. The conglomerate has outlined investments of $100 billion over the next few years across its businesses.
Flagship company Adani Enterprises Ltd is also expected to see significant earnings growth. Morgan Stanley estimates that its earnings before interest, taxes, depreciation and amortisation (EBITDA) could rise to ₹29,900 crore by FY29 from ₹14,000 crore in FY26, implying an annual growth rate of 29%.
Adani Group plans to fund up to half of the acquisition through equity, with the rest coming from borrowings.
Mitsubishi UFJ Financial Group (MUFG) is the sole underwriter for the transaction and has committed financing of up to €2.8 billion, according to an Adani Group statement issued on November 5.
Other lenders, including DBS Group Holdings, First Abu Dhabi Bank, Barclays and State Bank of India, are in discussions to join the financing at a later stage, Bloomberg reported.
The debt will initially be raised through a bridge loan with a tenure of around 18 months. It could subsequently be refinanced through longer-term borrowings.
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