Adani Ports acquires 80% stake in global OSV operator Astro Offshore

The deal comes as India's largest private port operator aims to grow its presence beyond its mainstay port operations to maintain its sector lead against smaller rivals JSW Infrastructure and Gujarat Pipavav.

Indian billionaire Gautam Adani.

Credit: Reuters Photo

New Delhi: Adani Ports and Special Economic Zone Ltd (APSEZ) on Friday said it has entered into an agreement to acquire 80 per cent stake in Astro Offshore for $185 million in an all-cash deal.

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

"APSEZ has entered into a definitive agreement to acquire 80 per cent stake in Astro, in an all-cash deal for USD 185 million, implying an EV of USD 235 million and EV/ FY25E EBITDA at 4.4x. The transaction is expected to be value accretive from the first year itself," it said.

According to the statement, incorporated in 2009, Astro is a leading global OSV operator in the Middle East, India, Far East Asia and Africa.

Astro owns a fleet of 26 Offshore Support Vessels (OSVs) comprising Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs) and workboats, and provides vessel management and complementary services, the statement said.

During the year ending April 30, 2024, Astro posted a $95 million revenue and $41 million EBITDA. As of April 30, 2024, Astro was net cash positive.

According to the statement, there are no regulatory approvals required and the transaction is expected to close within a month, subject to fulfilment of operational conditions precedent.

"Acquisition is part of APSEZ's roadmap to becoming one of the world's largest marine operators," the statement said, adding Astro will enhance APSEZ's global marine portfolio and add new Tier-1 customers to the roster.

APSEZ whole-time director and CEO Ashwani Gupta said, "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 inflection 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.