Adani Ports and Special Economic Zone (APSEZ) acquired 80 percent stake in global OSV (offshore support vessel) operator Astro Offshore for $185 million. The deal was an all-cash deal. The company will increase its fleet and work in areas other than ports.
The arrival of Astro Offshore will help in expanding Adani Ports’ global marine portfolio and will help in connecting tier-1 customers to it.
Adani Ports will buy 80 percent stake under this deal. Astro Offshore, which is part of this deal, has a fleet of 26 ships, including barges and workboats. Big companies like Larsen & Toubro and NMDC are its customers.
Giving information about the enterprise value of the transaction on behalf of the Adani Group company, it was said that $235 million is the enterprise value of this transaction. Its effect will be seen on the company’s financials from the first year itself.
APSEZ’s Whole Time Director and CEO Ashwani Gupta said that Astro has been acquired to fulfill the goal of becoming “the world’s largest marine operator”. At present, we have a fleet of 142 tugs and dredgers and the acquisition of Astro will add 26 OSVs to it. After the acquisition of Astro, the size of our fleet will increase to 168.
He further said that this acquisition will help the company to establish access to tier-1 customers. This acquisition will give a strong hold on the market of East Asia, Arabian Sea and Indian subcontinent.
Astro is a global OSV operator in Africa, Middle East, East Asia and India. The company’s net cash is positive. Astro reported revenue of $95 million and EBITDA of $41 million on April 30, 2024.
At the same time, the country’s largest port developer and operator is Adani Ports. The company has strategically important ports and terminals at 15 locations in the country.
In the first quarter of the year 2024-25, Adani Ports had recorded a profit of Rs 3,107 crore. During this period, the company’s income was Rs 7,560 crore.
Adani Ports said that the acquisition will be completed within a month and no regulatory approval will be required for it.
The deal is taking place at a time when Adani Ports, India’s largest private port company, wants to expand its presence in other areas beyond its main port operations. Adani Ports aims to stay ahead of smaller rivals like JSW Infrastructure, Gujarat Pipavav.
