Adani Ports and Special Economic Zone Ltd’s (APSEZ) composite scheme of arrangement to acquire Sarguja Rail Corridor Pvt Ltd (SRCPL) has been approved by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) and will be effective from the Appointed Date of 1 April 2021.
APSEZ will now consolidate all rail assets under a single business entity – Adani Tracks Management Services Pvt Ltd – creating value for all stakeholders from day one, as it aligns with APSEZ’s vision of being a leader in the Transport Utility space, a company statement said.
This consolidation will allow APSEZ, which is targeting 2,000 km of track length by 2025, to participate in Indian Railways PPP projects without having to compete with similar businesses in the Adani portfolio, a position that is in full alignment with the equity interests of minority shareholders.
Karan Adani, CEO and whole time director of APSEZ said, “As per the national rail plan 2020, Indian Railways will invest more than ₹3 Lakh Crore over the next 10 years to construct new rail lines. Further, the government’s shift in focus from road to rail as the preferred mode of transport, an obvious choice both economically and environmentally, will require significant participation of the private sector. Therefore, this acquisition creates significant business value for APSEZ as a Transport Utility.”
“The process adopted by APSEZ to acquire SRCPL from another entity within the Adani Group,” added Karan Adani, “reflects our continuous commitment to enhancing our corporate governance practices. The strongest endorsement of the process lies in the overwhelming support it received from our minority shareholders, reaffirming their confidence in APSEZ’s management.”
