Adani Ports Triumphantly Secures Majority Stake in Astro Offshore Group | Capital Market News

Adani Ports and Special Economic Zone (APSEZ) Acquires 80% Stake in Astro Offshore Group for $185 Million

Adani Ports and Special Economic Zone (APSEZ) has finalized an agreement to acquire an 80% stake in Astro Offshore Group for $185 million. This all-cash deal values Astro at an enterprise value (EV) of $235 million and an EV/FY25E EBITDA multiple of 4.4x. The transaction is expected to be value-accretive from the first year.

Astro Offshore, established in 2009, operates globally with a fleet of 26 Offshore Support Vessels (OSVs) including Anchor Handling Tugs, flat top barges, Multipurpose Support Vessels, and workboats. In the fiscal year ending April 30, 2024, Astro reported $95 million in revenue and $41 million in EBITDA and was net cash positive.

Astro services top-tier clients such as NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem, making significant contributions to offshore construction, fabrication, and transportation markets. Their broad pre-qualification with major global EPC contractors has bolstered their client roster in the oil and gas sector.

This strategic acquisition will expand APSEZ’s fleet to 168 vessels, enhancing its operations across the Arabian Gulf, Indian subcontinent, and Far East Asia. APSEZ CEO Ashwani Gupta emphasized the importance of this acquisition in their mission to become a leading global marine operator.

This acquisition not only brings a significant addition to APSEZ’s fleet but also reinforces its position in the offshore marine services market, ensuring high fleet utilization and benefiting from rising charter rates due to limited global OSV supply.

Disclaimer: No Business Standard journalist was involved in the creation of this content.

Published on: Aug 30, 2024 | 3:20 PM IST

Original Story https://www.business-standard.com/markets/capital-market-news/adani-ports-to-acquire-majority-stake-in-astro-offshore-group-124083000650_1.html
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