India’s Adani Ports buys 80% stake in Astro Offshore for $185m

India’s largest ports and logistics company has sealed an agreement to buy acquire 80% stake in Astro Offshore group in an all-cash deal for $185m. The transaction is expected to close within a month.

Adani Ports and Special Economic Zone Ltd (APSEZ) said on Friday that it has entered into a definitive agreement to acquire 80% stake in Astro Offshore group in an all-cash deal for $185m.

The deal reached between the two parties, which is part of APSEZ’s strategy to become one of the world’s largest marine operators, is expected to be value accretive from the first year itself.

APSEZ reported that the existing promoters of Astro will hold the remaining 20% stake.

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

The OSV operator in the Middle East, India, Far East Asia and Africa, Astro, has an impressive roster of Tier-1 customers, APSEZ said, including NMDC, McDermott, COOEC, Larsen & Toubro and Saipem.

Astro supports the construction and maintenance of offshore platforms, oil and gas fields and subsea facilities.

Astro’s vessels also support multiple operations for leading international dredging companies, including large offshore construction and land reclamation projects.

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

“Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers. This partnership with APSEZ represents a critical inflection point for us,” noted Mark Humphreys, managing director, Astro Offshore.

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