Published On:August 11 2014
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Adani plans to sell Australian coal terminal for $2 billion.
The promoters of Adani Group plan to sell their Abbot Point coal terminal in Australia at close to the acquisition price of $2 billion. They had bought the terminal in May 2011, at the peak of a coal boom.
The project was transferred to the Adani family in January last year, after analysts raised objections over the high debt burden of India-listed Adani Ports, which had bought the terminal in an all-cash deal.
The change in the group's strategy is mainly due to a slowing coal traffic, apart from coal prices falling to $70 a tonne from $120 a tonne three years ago, say bankers. The group has asked bankers in Australia to come up with proposals for sale and other options, say bankers. Private equity firms or infrastructure companies might be interested, they add.