Adani Ports & Special Economic Zone Ltd (NSE: ADANIPORTS) is now preparing to buy an 80% stake in global offshore service vehicle operator Astro.
According to the press release, the transaction can be completed with cash in exchange for $185 million. Astro’s operations span all of the Middle East, India, East Asia, and Africa.
The company owns 26 OSVs including anchor-handling tugs (AHTs) and flat-top barges Multipurpose Support Vessels (MPSVs) and workboats. Apart from this, Astro also provides vessel management and other services.
Adani Ports & Special Economic Zone Ltd’s CEO and Wholetime Director Ashwini Gupta said the acquisition of Astro is part of our agenda to become a major marine operator in the world.
Astro’s 26 offshore service vehicles (OSVs) will be added to our fleet, while we already have 142 tugs and dredgers and the total number of such equipment will increase to 168.
This acquisition will strengthen our reach in Arab countries, the Indian subcontinent, and East Asian countries. In the next few months, we will be working closely with Astro’s leadership team of Astro and further develop the current platform.’
Astro’s Tier-1 customers are NMDC, McDermott, COOEC, Larsen & Toubro and Saipem. Astro Offshore Managing Director Mark Humphreys said, ‘In the last 15 years, we have built a great foundation for the company.
We have made strategic investments in the OSV fleet and have very deep relationships with customers. Partnership with Adani Ports & Special Economic Zone Ltd is a very important milestone for us.
Together we can promote growth and provide better services to customers.’
In the year ending April 2024, Astro’s revenue was $95 million, while EBITDA was $41 million. APSEZ shares closed 0.40 percent higher at Rs 1,481.90 on the National Stock Exchange (NSE).
Quick Fact
Company name: Adani Ports
| Company name | Adani Ports |
|---|---|
| Business | Port operation, logistics, and SEZ |
| Acquisition | 80% stake in Astro |
| Acquisition Cost | $185 million |
| Expansion Areas | Middle East, India, East Asia, Africa |
| Fleet Size After Acquisition | 168 (142 existing + 26 from Astro) |
| CEO & Wholetime Director | Ashwini Gupta |
| Goal | Major global marine operator |
| Strategy | Expand reach in Arab, Indian subcontinent, East Asia |
| Partners | Astro leadership team |
| Possible Revenue | Increased due to Astro acquisition |
Company name: Astro
| Company name | Astro |
|---|---|
| Business | Offshore service vehicle operator |
| Fleet | 26 OSVs, AHTs, flat-top barges, MPSVs, workboats |
| Services | Vessel management, other services |
| Tier-1 Customers | NMDC, McDermott, COOEC, Larsen & Toubro, Saipem |
| Managing Director | Mark Humphreys |
| Company Foundation | 15 years |
| Financials (Year Ending April 2024) | Revenue: $95 million, EBITDA: $41 million |
| Strategic Milestone | Partnership with Adani Ports |
| Goal | Growth and better customer services |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
