Adani Ports can absorb proposed Evos acquisition costs: S&P

New Delhi: Adani Ports and Special Economic Zone will bolster the scale and diversity of its international portfolio through the proposed acquisition of Evos BV, S&P Global Ratings said Wednesday.

"The company can maintain its financials and credit quality after the acquisition of the liquid storage operator, in our view," the rating agency said in a statement.

Also Read: Adani Ports agrees to buy Dutch storage and terminal co Evos for $2.9 bn


Adani Ports and Special Economic Zone Ltd (APSEZ) last week said it has agreed to acquire 100 per cent of the Netherlands-based Evos BV from Igneo Infrastructure Partners at an enterprise value of 2.56 billion euros, marking a major expansion of its international operations and giving it a significant presence in Europe's liquid storage and energy infrastructure market.

"While Netherlands-headquartered Evos has limited operating synergies with Adani Ports' operations in India, the deal is consistent with the latter's growth strategy. It will allow Adani Ports to diversify its liquids portfolio with exposure to the growing market for new-age transition fuels such as sustainable aviation fuel, biofuels, methanol and bioethanol.

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"At the same, the deal expands Adani Ports' geographic footprint into more developed markets with stable operating environments," S&P said.

The all-cash transaction is valued at an enterprise value of 2.56 billion euro, equivalent to around Rs 27,000 crore, implying an equity value of approximately 1.18 billion euro. The acquisition is scheduled to be completed within 15 months, subject to regulatory approvals in India and relevant foreign jurisdictions.

"By our calculations, international investments could increase to about 20 per cent of the total revenue of Adani Ports from 10-15 per cent at present. We forecast the company will maintain a healthy ratio of adjusted debt to EBITDA of 2.3x in fiscal 2028 (ending March 31) and 2.7x in fiscal 2029 post the acquisition, below our downside trigger of 3.5x," S&P said.

The transaction, it said, remains aligned with Adani Ports' financial policy of maintaining a net debt-to-EBITDA ratio of below 2.5x, based on the company's calculations. Potential proceeds from the company's pending stake sale in Vizhinjam port can provide a cushion to absorb growth spending over the next two years.

"We estimate Evos will contribute about 9 per cent of Adani Ports' total EBITDA in fiscal 2029, supporting earnings quality. Evos benefits from high average commercial occupancy of 99 per cent and stable revenue, with a substantial portion of its storage capacity being under take-or-pay contracts which are linked to consumer price index inflation," the rating agency said.

Evos' robust reported EBITDA margin of 56 per cent in 2025 is similar to Adani Ports' 59 per cent in FY26.