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Indian port operator Adani Ports and Special Economic Zone (Apsez) acquired an 80% stake in Astro Offshore in a USD 185 mn all-cash transaction, according to a press release (pdf). Astro’s existing shareholders will retain a 20% stake in the business.
By the numbers: The transaction values the offshore support vessel (OSV) operator at USD 235 mn and is slated to close within a month. Astro turned in revenues of USD 95 mn in its fiscal year ending 30 April 2024, suggesting the transaction valued the company at about 2.5x revenues. Apsez is traded on India’s BSE and NSE.
Apsez aims to become “one of the world’s largest marine operators,” CEO Ashwani Gupta said. Apsez will have 168 vessels when Astro’s fleet of 26 OSVs is added to the company’s existing fleet of 142 tugs and dredgers.
New business, new geography: Astro’s existing clients include UAE-based NMDC, US-based McDermott, and Italian giant Saipem. The transaction will extend Apsez’s reach in the Gulf, the Indian subcontinent, and East Asia.
About Astro: Founded in 2009 and based in Singapore, Astro provides services for the offshore construction, oil and gas, and renewables industries. Its primary operational office is in Dubai and it has a presence in the Middle East, India, East Asia, and Africa.
BACKGROUND- Adani Ports was already in the Emirates through its UAE-based subsidiary East Africa Gateway, which most recently acquired 95% of Tanzania International Container Terminal Services for USD 39.5 mn from Hutchison Port Holdings and Harbors Investments.
AND- Adani and the UAE have close ties: The Abu Dhabi Investment Authority (Adia) invested in Adani’s power distribution arm Adani Energy Solutions’ USD 1 bn secondary share sale in July. An International Holding Company subsidiary also recently partnered with Adani Energy to expand smart metering in India, while another Adani subsidiary is set to digitize India’s economy through AI and blockchain with a separate IHC venture. IHC also raised its stake in Adani Enterprises in October to more than 5%, signaling interest in further investments in India.
