Adani Ports and Special Economic Zone (APSEZ) entered into a definitive agreement to acquire an 80 per cent stake in Astro Offshore, an offshore supply vessel firm, in an all-cash deal worth $185 million (around Rs 1,551 crore).
There are no regulatory approvals required, and the transaction is expected to close within a month, subject to fulfilment of operational conditions precedent.
According to a statement issued by APSEZ, the deal will imply an EV (enterprise valuation) of $235 million and EV/FY25E Ebitda at 4.4 times. The transaction is expected to be value-accretive from the first year itself.
Astro Offshore is a global offshore support vessel (OSV) operator in the Middle East, India, Far East Asia, and Africa. It owns a fleet of 26 OSVs, comprising anchor handling tugs (AHTs), flat-top barges, multipurpose support vessels (MPSVs), and workboats. The company provides vessel management and complementary services.
Ashwani Gupta, whole-time director and chief executive officer, APSEZ, said, “Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168. The acquisition will also give us access to an impressive roster of Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent, and Far East Asia.”
Mark Humphreys, managing director, Astro Offshore, stated that the partnership is “a critical inflection point” for the company as it aims to expand its geographical footprint.
During the year ending April 30, 2024, Astro posted a revenue of $95 million and Ebitda of $41 million. The company was net cash positive as of April 30, 2024. It has Tier-1 customers, including NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem.
The shares of Adani Ports closed flat at Rs 1,482 a share. In the last few years, Adani Ports acquired several ports in India and overseas, including Haifa Port in Israel.
First Published: Aug 30 2024 | 6:01 PM IST