Adani Ports acquires 80% stake in Astro Offshore for Rs 1,551 crore

Astro Offshore is a leading global OSV operator in the Middle East, India, Far East Asia, and Africa

India’s largest private port operator Adani Ports and Special Economic Zone (APSEZ) on Friday said it will acquire 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 be closed in a month, subject to the fulfilment of operational conditions precedent.

With this acquisition, APSEZ plans to expand its fleet and diversify beyond port operations.

The company said the existing promoters of Astro will hold the remaining 20 per cent stake.

The deal will include 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, APSEZ said in a statement.

 

Astro Offshore is a global offshore support vessel (OSV) operator in West Asia, India, Far East Asia, and Africa.

It owns a fleet of 26 OSVs, comprising anchor handling tugs (AHTs), flat-top barges, multipurpose support vessels, and workboats. The company provides vessel management and complementary services.

“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,” Ashwani Gupta, whole-time director and chief executive officer, APSEZ said.

Mark Humphreys, managing director, Astro Offshore, said the partnership is "a critical inflection point" for the company. 

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 30 April 2024. It has Tier-1 customers, including NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem.