Adani readies own capital for Evos takeover
Up to $1.45 billion in equity would cover half the €2.56 billion price of the Dutch storage operator, Indian banks freed in July to fund 75 percent of takeovers line up behind MUFG's €2.8 billion commitment
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Adani Group plans to cover roughly half the cost of its €2.56 billion takeover of Evos, the Dutch liquid-storage operator, with its own capital — up to $1.45 billion in equity — and raise the balance through syndicated borrowing, according to a Bloomberg report relayed by Times Now News. Mitsubishi UFJ Financial Group is sole underwriter, with financing of up to €2.8 billion committed when the transaction was announced on November 5.
The borrowing is expected to start as a bridge loan of about 18 months before being replaced with longer-duration debt, and Adani is separately exploring refinancing the roughly €1.3 billion that Evos already carries. DBS, First Abu Dhabi Bank, Barclays and State Bank of India are among the lenders discussing participation; a spokesperson for First Abu Dhabi Bank declined to comment beyond saying the bank conducts its business "in accordance with the highest standards of governance and regulatory compliance".
The syndicate is assembling around a rule change at home. Since July 1, Indian domestic banks may finance up to 75 percent of the value of corporate takeovers — a Reserve Bank of India relaxation — and State Bank of India signed a partnership with MUFG in March to pursue Indian merger-and-acquisition work. The precedent list is growing: Tata Motors arranged a €3.875 billion bridge loan to buy Iveco's commercial-vehicle business last year, and Sun Pharmaceutical used debt and cash for its $12 billion acquisition of Organon. "India's banking sector could soon be humming," Sarah Jane Mahmud of Bloomberg Intelligence told the outlet.
Adani, led by billionaire Gautam Adani, has been expanding internationally across ports and infrastructure through acquisitions; Evos is European liquid storage, the financing is underwritten in Tokyo, and Indian state lenders can join the syndicate because of a rule that took effect in July.
Negotiations are not finalised; amounts, terms and structure remain subject to change. MUFG's commitment of up to €2.8 billion is larger than the €2.56 billion price of the company being bought.