APSEZ acquires 80% stake in Astro Offshore for $ 185 million

On Friday, Adani Ports and Special Economic Zone Ltd (APSEZ) announced that it has finalized an agreement to acquire an 80 per cent interest in Astro Offshore for USD 185 million in a cash transaction.

The company indicated that the current promoters of Astro will retain the remaining 20 per cent interest.

"APSEZ has executed a definitive agreement to purchase an 80 per cent stake in Astro for USD 185 million in an all-cash transaction, which reflects an enterprise value of USD 235 million and an EV/FY25E EBITDA multiple of 4.4x. This transaction is anticipated to be accretive to value from the first year," the statement noted.

Established in 2009, Astro is recognised as a prominent global operator of Offshore Support Vessels (OSVs) in regions including the Middle East, India, Far East Asia, and Africa.

Astro's fleet consists of 26 OSVs, which include Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs), and workboats, in addition to providing vessel management and related services, as stated.

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For the fiscal year ending April 30, 2024, Astro reported revenues of USD 95 million and an EBITDA of USD 41 million. As of April 30, 2024, the company was in a net cash-positive position.

The statement further clarified that no regulatory approvals are necessary, and the transaction is expected to be completed within a month, contingent upon the fulfilment of operational conditions.

Why this acquisition

"Acquisition is part of APSEZ's roadmap to becoming one of the world's largest marine operators," the statement read. The addition of Astro will strengthen APSEZ's international marine portfolio and attract new Tier-1 clients.

Ashwani Gupta, the whole-time director and CEO of APSEZ, remarked, "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."

Astro Offshore managing director Mark Humphreys said, "This partnership with APSEZ represents a critical inflexion point for us."

APSEZ, a part of the globally diversified Adani Group, is the largest port developer and operator in India with 7 strategically located ports and terminals on the west coast and 8 ports and terminals on the east coast.