Adani Ports acquires 80% stake in Astro Offshore for $185 m in cash

Adani Ports and Special Economic Zone (APSEZ) has entered into a definitive agreement with Astro Offshore under which it will acquire a majority stake in the offshore support vessel operator for $185 million, in cash.

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

The deal implies an enterprise value of $235 million, including debt.

Astro Offshore owns a fleet of 26 vessels, including barges and workboats, which will expand Adani’s current fleet of 142 tugs and dredgers The deal will also help Adani Ports and SEZ diversify beyond port operations.

Besides, the deal will give Adani ports access to an impressive list of customers in the EPC, oil and gas and renewables industry as also mining and engineering majors like India’s state-owned NMDC and Larsen and Toubro (L&T), McDermott and COOEC..

The acquisition is expected to close within a month as there is no requirement of regulatory approvals, Adani Ports stated.

The deal is part of Adani Ports’ decision to expand its presence beyond mainstay port operations and maintain its position as India’s largest port operator.

Adani Group completed the purchase of Israel’s Haifa Port earlier in January 2023, expanding its presence to the West Asia region. 

The acquisition of Astro Offshore will further consolidate Adani Ports’ operations across the India-Middle East-Far East regions.

With a fleet of Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs) and workboats, Astro provides vessel management and complementary services in the Middle East, India, Far East and Africa. 

For the four months ended 30 April 2024, the company reported revenues of $95 million and EBITDA of $41 million.