Adani may make AS $2 bn bid for Brisbane port: report

The Adani Group is looking at putting in an AS $2 billion bid for the Port of Brisbane that is being privatised by the Queensland government, media reports said today.

"Indian conglomerate Adani Group has emerged as the third player in the AS $2 billion privatisation of the Port of Brisbane," The Australian said in a report.

The Group, which manages India's largest private sector port, Mundra Port and Special Economic Zone (SEZ), has been investing in coal mines and related infrastructure in Australia.
    
"While reports have identified two consortium conducting due diligence on the port, for which bids are due late this month, The Australian has learned that Adani is also expected to lodge a bid.
    
"...The (state) government is offering 99-year leases at the port under a landlord-style model," it said.
    
When contacted, an Adani Group spokesperson declined to comment on the development, but maintained that "we continuously look for growth opportunities both in India and abroad." The company is looking for similar opportunities in South Africa.
    
Adani Group, which is India's largest importer of coal, had in August bought coal assets of Linc Energy in Queensland for a cash and royalty deal of ASD 3 billion. It has also been granted the right to develop a new coal port at Dudgeon Point in north Queensland.
    
According to the report, the Port of Brisbane Corporation generated a net profit of $232 million for the year to June 30.
    
"However, differences in business models and underlying operating volatility mean that the final sale is likely to be in the low ASD 2 billion range," the report said.
    
Further the report said, New Zealand infrastructure players Infratil and HRL Morrison withdrew early last month, leaving a group led by Morgan Stanley Infrastructure Partners and Unisuper, and a syndicate of Global Infrastructure Partners, Queensland Investment Corporation and Macquarie Capital.
   
The Credit Suisse-advised Global Infrastructure Partners bid is still seen by industry watchers and rivals as the strongest among the field of potential bidders, it said.